By Sheri Kasprzak
New York, April 13 - Katanga Mining Ltd. has negotiated a C$101.5 million private placement.
The deal includes up to 14 million subscription receipts at C$7.25 apiece.
The receipts are exchangeable for one common share on the completion of Katanga's acquisition of Kinross Forrest Ltd.
A syndicate of underwriters led by GMP Securities LP and including RBC Dominion Securities Inc., Haywood Securities Inc., Sprott Securities Inc., Dundee Securities Corp. and Paradigm Capital Inc. has a greenshoe for up to 7 million additional receipts.
The deal is scheduled to close May 2.
Proceeds will be used for exploration and development of the company's Kamoto/Dima mining complex in the Democratic Republic of Congo. The rest will be used for working capital and general corporate purposes.
Toronto-based Katanga is a mineral exploration company.
| Issuer: | Katanga Mining Ltd.
|
| Issue: | Subscription receipts exchangeable for common stock
|
| Amount: | C$101.5 million
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| Receipts: | 14 million
|
| Price: | C$7.25
|
| Warrants: | No
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| Underwriters: | GMP Securities LP (lead), RBC Dominion Securities Inc., Haywood Securities Inc., Sprott Securities Inc., Dundee Securities Corp. and Paradigm Capital Inc.
|
| Pricing date: | April 13
|
| Settlement date: | May 2
|
| Stock symbol: | TSX Venture: KAT
|
| Stock price: | C$7.70 at close April 12
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