DRC mining entity Gécamines has officially withdrawn the legal proceedings it commenced on 20 April 2018 in the Kolwezi Commercial Court to dissolve Kamoto Copper Company.
The withdrawal follows on the back of the formal announcement that Katanga Mining, together with its 75% operating subsidiary in the DRC, Kamoto Copper Company (KCC), has completed the transactions contemplated by the settlement agreement announced on 12 June 2018, with (amongst others) Gécamines.
The recapitalization plan entails the reconstruction of the net equity of KCC which then satisfies the requirements provided for by DRC corporate law.
When the deal was first announced, Hugh Stoyell, non-executive chairman of the board of directors of KCC noted: “We are pleased to have reached an agreement to resolve the KCC capitalization issues and preserve and revitalise the partnership between KCC and Gécamines.”
“Throughout the discussions and negotiations that resulted in this settlement, we have been well supported by our majority shareholder Glencore, and we look forward to the next phase of development at KCC, which we believe will provide significant benefits to Katanga and its stakeholders, as well as Gécamines and all stakeholders in the DRC.”