TORONTO (miningweekly.com) - Copper- and cobalt-miner Katanga Mining, which has already scaled back its operations to cushion the effects of low metals prices, cautioned on Monday that it required additional funding "on an urgent basis" to stay afloat.

The firm's cash reserves will be enough to fund continuing operations for a short period only, at current expenditures and operating levels.

Katanga said it is examining a number of options to ensure it continues as a going concern, including a share sale and a convertible debt financing with a number of shareholders.

If a convertible debt financing option is pursued it is possible that participating shareholders would be permitted to significantly increase their equity stake without prior shareholder approval, the firm pointed out.

The company has set a shareholder meeting for January 12 for a vote on increasing its authorised share capital to 5-billion shares, with a par value of C$0,10 each.

The company currently has an authorised share capital of 300-million, with 206,1-million shares issued and outstanding.

Katanga also announced on Monday that CFO Stephen Jones had resigned effective December 9.

He will be replaced by finance director Nicholas Brodie.

Katanga, which is consolidating, rehabilitating and expanding the neighbouring Kamoto and KOV operations in the Democratic Republic of Congo, after merging with rival Nikanor earlier this year, said in October it was reviewing capital expenditure plans going forward.

The company then announced on November 21 that it had temporarily stopped mining operations at its Tilwezembe open pit and ore processing at its Kolwezi concentrator, in the Democratic Republic of Congo, in response to slumping cobalt prices.

TSX-listed Katanga's shares fell 6,5% on Monday morning, to C$0,36 each by 11:02 in Toronto.

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