December 18, 2018 / 3:56 PM / 10 months ago

BRIEF-Katanga settles Congo investigation with Canadian regulator

Dec 18 (Reuters) - Katanga Mining Ltd:

* KATANGA MINING ANNOUNCES APPROVAL OF AGREEMENT TO SETTLE ONTARIO SECURITIES COMMISSION MATTERS

* KATANGA WILL MAKE A VOLUNTARY PAYMENT IN AMOUNT OF C$28.5 MILLION

* CEO JOHNNY BLIZZARD WILL RESIGN AS A DIRECTOR AND OFFICER OF COMPANY

* WILL MAKE REIMBURSE COMMISSION COSTS IN AMOUNT OF C$1.5 MILLION

* BLIZZARD’S RESIGNATION IS SUBJECT TO A SHORT TRANSITION PERIOD UNTIL HIS REPLACEMENT IS APPOINTED

* WILL SUBMIT TO REVIEW BY AN INDEPENDENT CONSULTANT OF METAL ACCOUNTING WITH RESPECT TO REPORTING OF PRODUCTION, FINANCIAL ACCOUNTING

* FOLLOWING INTERNAL REVIEW, COMPOSITION OF BOARD OF DIRECTORS WAS CHANGED TO INCLUDE THREE NEW DIRECTORS

* IN SETTLEMENT, AGREES CO MISSTATED ITS FINANCIAL POSITION AND RESULTS OF ITS OPERATIONS

* INTENDS TO ENTER INTO A MANAGEMENT AGREEMENT IN EARLY 2019 WITH ITS MAJORITY SHAREHOLDER, GLENCORE INTERNATIONAL AG

* IN SETTLEMENT, AGREES IT FAILED TO DISCLOSE MATERIAL WEAKNESSES IN ITS INTERNAL CONTROLS

* “KATANGA BELIEVES THAT MANAGEMENT AGREEMENT WILL ALLOW OPERATIONS TO BE MANAGED MORE EFFECTIVELY”

* FAILED TO ADEQUATELY DESCRIBE HEIGHTENED RISKS ASSOCIATED WITH RELIANCE ON INDIVIDUALS, ENTITIES ASSOCIATED WITH DAN GERTLER

* IN SETTLEMENT, AGREES IT FAILED TO MAINTAIN ADEQUATE DISCLOSURE CONTROLS, PROCEDURES, INTERNAL CONTROLS OVER FINANCIAL REPORTING Source text for Eikon: Further company coverage:

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