Update on Recommended Merger

RNS Number:3573J
Nikanor Plc
06 December 2007



   NOT FOR DISTRIBUTION IN OR INTO CANADA, UNITED STATES, AUSTRALIA OR JAPAN


           UPDATE ON RECOMMENDED MERGER OF NIKANOR AND KATANGA MINING


Nikanor PLC (LSE: NKR) announces the posting of the Offer Document and Notice of
Extraordinary General Meeting in connection with the recommended merger of
Katanga Mining Limited ("Katanga") and Nikanor PLC ("Nikanor") by way of an
offer by Katanga for Nikanor.


The first closing date for the Offer is 11 January 2008.  Valid acceptances of
the Offer must be received by no later than 1.00 pm (London time).  The Offer is
conditional upon the passing at an Extraordinary General Meeting of Nikanor of
certain resolutions in connection with the proposed return of capital. Further
details and the resolutions are set out in the Notice of Extraordinary General
Meeting.  The Extraordinary General Meeting of Nikanor will be held at 10.00 am
on 10 January 2008, at the offices of JPMorgan Cazenove, 20 Moorgate, London
EC2R 6DA, United Kingdom.


In addition to this Offer Document, Katanga has published today a Management
Information Circular which contains certain information on Nikanor.  The Offer
Document and Katanga's Management Information Circular contain updated details
including, among other things:


Integration Committee

An Integration Committee to oversee the integration of Nikanor and Katanga has
been created.



Application for London listing

The merged company, which will retain the name Katanga Mining Limited, will (i)
make an application to the TSX to list the common shares of the merged company
to take effect on the first business day following the date on which the Offer
becomes unconditional in all respects (the "Effective Date") and (ii) make an
application to be admitted to trading on the Main Market of the London Stock
Exchange and to obtain a primary listing on the Official List within 5 months of
the Effective Date, or as soon as practicable thereafter.



Board of Directors

On 6 November 2007, it was announced that Con Fauconnier was to take the
position of the independent non-executive Chairman of the merged company. Since
that date, Mr. Fauconnier has reassessed his existing commitments and agreed
with the board of Katanga and the board of Nikanor that due to other priorities
he would not take up the proposed role.



The board of Katanga and the board of Nikanor are delighted that Hugh Stoyell
has agreed to become independent non-executive Chairman of the merged company.
Mr. Stoyell has a wealth of experience in the mining sector. His previous roles,
amongst other things, include nearly 30 years of experience with Rand Mines
Limited in various capacities including Directorships, Chairman of Duiker Mining
Limited and a Directorship with Lonmin PLC. Hugh is currently a Non-Executive
Director of Sentula Mining Limited as well as caretaker Chief Operating Officer
of Siyanda Coal Limited.



Independent Technical Report

As envisaged in the announcement of 6 November 2007, a revised Independent
Technical Report (the "ITR") on Nikanor's assets has been filed with the Toronto
Stock Exchange as part of Katanga's submission to its shareholders to approve
the Merger.



In producing the ITR, SRK Consulting has revised its geostatistical approach for
KOV and modelled the geology in greater detail than in the Independent Competent
Persons Report prepared in 2006.  In particular, cognisance has been taken of
the individual lithologies within the various orebodies in the geostatistical
re-estimation. The revised approach taken by SRK has resulted in an increase in
total tonnes of ore for the Nikanor assets from 185 Mt to 215 Mt, an increase in
total contained copper, and a decrease in total contained cobalt.  However,
certain of the lithologies and in particular one known as the RSC, have limited
data from drillhole intersections which has resulted in their re-classification
from Indicated to Inferred Mineral Resources.



Summary of Mineral Resources as at 28 November 2007

Category                                               Ore             Grade (%)          Contained Metal (kt)
                                                       (Mt)      Total Cu    Total Co        Cu           Co
Mineral Resources:                   

Indicated
KOV                                                   126.9        5.33        0.40        6 764          508

Total Indicated Resources                             126.9        5.33        0.40        6 764          508
Inferred
KOV                                                    71.2        3.56        0.32        2 535          228
Kananga West                                            4.0        1.44        0.74           58           30
Tilwezembe                                             13.1        1.59        0.65          208           85
Total Inferred Resources                               88.3        3.17        0.39        2 801          343
Total Resources                                       215.2        4.44        0.40        9 565          851



Following completion of the merger, a full feasibility study will be
commissioned on the merged company's combined asset base.  The Life of Mine plan
will be amended to reflect the better understanding of the distribution of
resources.  Consequently, no statement of reserves has been provided at this
time, pending completion of a new Life of Mine plan.



The Offer Document and Notice of Extraordinary General Meeting are available on
Nikanor's website: www.nikanor.co.uk.  The ITR and Katanga Mining Limited's
Management Information Circular are also available under Katanga's profile on
SEDAR at www.sedar.com.





For further information, please contact:



Nikanor PLC                                      +44 (0) 20 7529 5800

Jonathan Leslie, Executive Chairman

Peter Sydney-Smith, Finance Director

Richard Boorman, Head of Investor Relations



Citigate Dewe Rogerson                           +44 (0)20 7638 9571

Kate Delahunty

George Cazenove



JPMorgan Cazenove                                +44 (0)20 7588 2828

Joe Seifert



Notes to Editors

Nikanor is a mining group which owns assets in the heart of the African
copperbelt in the Democratic Republic of Congo.  The group's key mine is KOV,
containing one of the world's largest high quality copper and cobalt ore bodies.
Nikanor is rehabilitating this proven and well documented brownfield site and
building a major state of the art refining plant to produce 250,000 tonnes per
year of LME A-grade copper cathode and 27,500 tonnes per year of cobalt
products.  Nikanor was admitted to the London Stock Exchange (AIM) on 17 July
2006.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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