MERGER OF NIKANOR AND KATANGA

By Julian Sudre



Mining

Nikanor, the Aim-listed mining group with assets in the heart of the African copperbelt in the Republic Democratic of Congo, had its shares lifted 24p to 644p today when a merger with Mining group, Katanga was announced.

Katanga, the Toronto Stock Exchange-listed company agreed to a $2.1bn to buy Nikanor and the combined firm is expected to generate a $3.3bn market capitalisation along with being the largest copper producer in Africa and the largest cobalt producer in the world.
Such merger will produce an output potential of 400 000 tonnes of copper cathode and 40 000 tonnes of cobalt.

Kantanga will issue 0.613 of a share and pay $2.16 for each share. Nikanor shareholders will hold a 60 per cent of the combines company and Kantaga shareholders will have the other 40 per cent.
Shares in Katanga soared 42 per cent while Nikara's were up 5.4 per cent.

"Transacting the deal now gives us the best opportunity to lower the overall capital spending and deliver maximum benefit from consolidated suite of operations" said Arthur Ditto, the CEO who will lead the merged company.

The merged company will retain the name Katanga Mining Limited and will apply for a primary listing on the main market of the London Stock Exchange and will have therefore have primary listings on the TSX and LSE.