You can get Katana for killing the boss inside the mine, location on the screenshoot. It deals pretty good magic damage, and has amazing weapon arts. Be prepared, boss deals A LOT of damage, but its not hard to dodge.
 
 
Spoiler/small tip:
 
You can get some extra dialogue from Alexander (Pot Guy) there, so be sure to rescue him earlier:)
 
 

Where to find

 
 

 
 

 
 
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