April 22, 2018 / 9:13 PM / 7 months ago

BRIEF-Katanga Mining Says Gécamines Commenced Legal Proceedings In Congo To Dissolve Kamoto Copper Company

April 22 (Reuters) - Katanga Mining Ltd:

* KATANGA MINING PROVIDES UPDATE ON KCC RECAPITALIZATION PROCESS AND NOTES COMMENCEMENT OF DRC LEGAL PROCEEDINGS BY GÉCAMINES

* WAS NOTIFIED THAT JOINT VENTURE PARTNER GÉCAMINES COMMENCED LEGAL PROCEEDINGS IN CONGO TO DISSOLVE KAMOTO COPPER COMPANY

* LEGAL PROCEEDINGS IN CONGO COMMENCED FOLLOWING KAMOTO'S FAILURE TO ADDRESS PREVIOUSLY DISCLOSED CAPITAL DEFICIENCY

* COURT MAY GRANT KAMOTO UPTO 6 MONTHS TO REGULARIZE SITUATION; CO HAS SEVERAL OPTIONS TO REMEDY CAPITAL EFICIENCY, AVOID DISSOLUTION

* WILL CONTINUE ATTEMPTING TO ENGAGE IN DISCUSSIONS WITH GÉCAMINES, TAKE NECESSARY STEPS TO ENSURE CONTINUATION OF OPERATIONS OF KAMOTO

* ASSESSING OPTIONS TO CONVERT PORTION OF EXISTING INTERCOMPANY DEBT OWED BY KAMOTO TO CO INTO EQUITY OR FORGIVING PORTION OF SUCH DEBT

* KAMOTO CASH FLOWS EXPECTED TO BE SUFFICIENT TO REPAY OUTSTANDING SHAREHOLDERS DEBT, TO FUND DISTRIBUTIONS, INCLUDING GÉCAMINES Source text for Eikon: Further company coverage:

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