CAMEC increases all-stock bid for Katanga Mining, valuing company at $1.98B

KODE PPC ANDA

Central African Mining & Exploration Co. has increased its offer for Katanga Mining Ltd. (TSX:KAT) to 17 shares of new company for every Katanga share shares, up from a prior 15 to one ratio.

The deal would value Katanga at about $1.98 billion, or 943 million British pounds. Shares in Katanga were ahead $1.32 at $26.22 in midday trading on the Toronto Stock Exchange, a gain of 5.3 per cent and a new 52-week high.

CAMEC already owns 22 per cent of the outstanding common shares of Katanga.

Shareholders are expected to vote on the bid in August.

Katanga Mining operates a major copper-cobalt mine complex in the Democratic Republic of Congo. First copper is due to be shipped in December and the site is expected to reach full production in 2011: 150,000 tonnes of refined copper and 8,000 tonnes of refined cobalt annually.

KODE PPC ANDA