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Katanga obtains $635.5 million facility commitment from Glencore
By Jennifer Chiou
New York, Nov. 14 - Katanga Mining Ltd. announced on Friday that it negotiated an up to $635.5 million senior secured credit facility with Glencore International AG.
The facility will mature on Dec. 31, 2014.
The loan will bear interest at 10% per year and will be used to finance the updated phase 4 expansion of its copper cobalt project.
Up to $120 million of the loan proceeds will be used to refinance the company's C$115 million of 14% debentures due Nov. 30, 2013.
As security for the loan, if the facility is in default, Katanga will complete a deeply discounted rights offering with Glencore providing a standby commitment to repay the facility.
Katanga is a Toronto-based mineral exploration company.
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