UPDATE 1-Katanga Mining to acquire Congo mine operator Kamoto

* To pay $1.6 mln in cash, issue 12 mln Katanga shares

* Deal valued at $8.22 million



Aug 28 (Reuters) - Canadian Katanga Mining Ltd said it agreed to buy Kamoto Operating Ltd, a mine operator in the Democratic Republic of Congo, in a cash-and-stock deal.

Under the terms of the agreement, the owners of KOL would transfer their shares to Katanga for a cash payment of $1.6 million and the issue of 12 million common shares in Katanga.

The deal is valued at $8.22 million, based on Katanga's Thursday close of 60 Canadian cents.

Kamoto Operating (KOL) is owned by Wayland Management SA and Tain Holdings Ltd, entities related to George Forrest and Arthur Ditto, respectively, Katanga said in a statement.

KOL runs assets of Kamoto Copper Co (KCC), in which Katanga owns a 75 percent stake. KOL and KCC had entered into operating agreement in 2005, which terminates in September, the company said.

Shares of Katanga were flat at 60 Canadian cents Friday morning on the Toronto Stock Exchange.

($1=1.087 Canadian Dollar)

(Reporting by Sakshi A Mattoo in Bangalore; Editing by Unnikrishnan Nair) Keywords: KATANGA/ ([e-mail]; within U.S. [phone]; outside U.S. [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.