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Katanga Mining Announces C$7.6 billion Rights Offering Backstopped by Glencore

Fasken
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Client

Special Committee of Independent Directors of Katanga Mining

On November 16, 2019, Katanga Mining Limited (“Katanga”) announced a rights offering to raise estimated proceeds of C$7.6 billion fully backstopped by Glencore plc (“Glencore”). As part of the transaction, Glencore agreed to accept the proceeds of the rights offering to repay US$5.8 billion of debt owed to it and for Katanga to keep US$1.5 of residual debt on attractive terms. Pursuant to the rights offering, all eligible shareholders of Katanga will receive one right for every common share held on the record date. The subscription price for the rights offering will represent a 25% discount to the volume weighted average price of the common shares on the TSX for the five trading days immediately prior to the filing date of the final short form prospectus. Each Right is expected to entitle an eligible shareholder to purchase approximately 15 common shares. The transaction is expected to close in December 2019. Fasken advised the Special Committee of Independent Directors of Katanga with a team comprised of John Turner, Daniel Fuke and Florind Polo.

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