Mana Gained On Damage With Catalyst Is A Good Idea
I think it should just be siphoned both by damage received and 'dealt'. Perhaps make it champions only so you don't regain insane mana off of the creep wave or jungle, but adding in the capacity to get mana by 'winning' a trade as well as losing a trade I think would secure it's place in the mana item roster.
or
with impunity.