Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:whats the reason for the big selloff today?

[Lech1988]

You can clearly tell Glencore is fed up with with his company.

The Special Committee believes that the recapitalization of the Company is in the best interest of the Company and its minority shareholders because it: (i) provides the minority shareholders with the right, but not the obligation, to participate pro-rata in the recapitalization, (ii) is merely an acceleration of what would effectively occur on January 1, 2021 pursuant to the Company's existing rights offering agreement with Glencore if there is a default on the Glencore Loan Facilities, and (iii) is expected to result in less dilution to minority shareholders than repaying the debt at maturity given that (A) interest continues to accrue and be capitalized, (B) Glencore has agreed to extend the maturity of the remaining Glencore Debt (in the amount of approximately US$1.5 billion) to January 1, 2023, (C) a rights issue on January 1, 2021 is expected to be materially more dilutive as the share price is likely to be materially negatively affected by a continued deterioration in the Issuer's credit worthiness resulting from uncertainty with respect to the Issuer's financial condition and the Issuer's efforts to address this, and (D) addressing the recapitalization of the Issuer sooner rather than later removes the uncertainty regarding the Issuer's financial viability that was first disclosed in March 2019. The Special Committee also believes that it is more appropriate to address the debt owed to Glencore now rather than waiting until the maturity of the Glencore Loan Facilities in light of the very limited prospect that the Glencore Debt could be repaid or refinanced by a third party on or prior to January 1, 2021, as well as volatility in the Company's share price.