Katanga to buy mine operator Kamoto

By:

28th August 2009

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TORONTO (miningweekly.com) – TSX-listed Katanga Mining has agreed to buy Kamoto Operating Limited (KOL), which is the operator of Katanga's Komoto mine in the Democratic Republic of Congo.

KOL is owned by Wayland Management, an entity "connected" with DRC mining entrepreneur George Forrest, and Tain Holdings, which is linked to former Katanga CEO Arthur Ditto.

An operating agreement between Kamoto Copper and KOL , which was signed on November 2, will terminate on September 20 this year.

Wayland and Tain have agreed to sell KOL to Katanga for $1,6-million in cash and 12-million Katanga shares.

Katanga is consolidating, rehabilitating and expanding the neighbouring Kamoto and KOV operations in the DRC, after merging with rival Nikanor last year.

In July, the firm signed an amended joint venture agreement with DRC State miner Gécamines, bringing the company's government contract review process to an end.

Katanga shares slid 1,67% on Friday, to C$0,59 apiece by 15:54 in Toronto.

Edited by: Liezel Hill