Katanga to acquire Gécamines’ land rights for $250 million

Katanga boasts one of Congo’s biggest reserves of copper and cobalt. (Image courtesy of Katanga Mining)

Katanga Mining (TSX: KAT) announced Friday that its 75% owned subsidiary Kamoto Copper (KCC) has entered into an agreement with La Générale des Carrières et des Mines (Gécamines), its 25% joint venture partner in KCC, to acquire a land package from Gécamines covering areas adjacent to KCC’s existing mining concessions in the Democratic Republic of Congo.

The land Katanga will acquire includes multiple blocks over the preferred location for construction of a new long-term tailings facility

Katanga, a big Congolese copper and cobalt producer, said last month it would raise around $5.8 billion via a rights issue as part of a debt-for-equity swap with parent Glencore.

Commodities giant Glencore, which owns approximately 86.3% of Katanga, had agreed to swap $5.8 billion in debt for equity, which will raise its stake further in the firm.

The land Katanga will acquire from Gécamines includes multiple blocks over the preferred location for construction of a new long-term tailings facility, and multiple other blocks that will enhance KCC’s ability to more efficiently operate its mines, facilities and other key infrastructure requirements, Katanga said in the media release.

KCC will pay up to $250 million to acquire the land, the total amount payable being dependent on delivery of title to the different land areas.

The companies anticipate the title transfers to be completed in 2020.

4490 0

Comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More Africa News