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LON
LOLMI
LON - Lonmin - IFC invests US$15 Million in new Lonmin shares
Lonmin Plc
(Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number
1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN: GB0031192486
("Lonmin")
IFC invests US$15 million in new Lonmin shares
Further to the Lonmin IFC (International Finance Corporation) partnership
signed on 13 March 2007, the IFC has notified Lonmin that it is exercising
the first tranche of its option to invest in new Lonmin shares with an
initial investment of US$15 million. Lonmin will issue 245,020 shares to
the IFC at 3103 pence per share, a discount of 5.0% to the closing mid
market price of Lonmin shares on the London Stock Exchange on 2 April 2007.
Lonmin has committed to use the US$15 million received from the IFC as a
result of this investment to fund projects to benefit the communities which
host Lonmin`s operations in South Africa.
Enquiries:
Alex Shorland-Ball +44 (0)20 7201 6060
Vice President,
Investor Relations & Communications
The Lonmin IFC partnership is structured as follows:
Stand By Debt Facility
The IFC has agreed to provide a US$100 million standby loan facility to
Western Platinum Limited, a subsidiary of Lonmin. This facility is
available to facilitate the participation of any BEE partner selected by
Lonmin in any Lonmin project. In addition the facility can be drawn down to
fund any of Lonmin`s current or future expansion projects. The loan will
be repayable in 6 equal instalments with the first due 7 years after first
draw down and will attract interest at 1.5% above LIBOR.
Equity Investment
Lonmin has granted the IFC an option to acquire new Lonmin shares up to a
value of US$50 million. Lonmin will issue new shares to the IFC following
exercise of the option at a discount of 5% to the market price prevailing on
the London Stock Exchange at the time of exercise. The option is
exercisable at the IFC`s discretion and can be exercised in tranches of a
minimum of US$10 million. The option remains valid for 2 years from today`s
date.
Lonmin has committed to invest the first US$15 million received from the IFC
under the equity option in community projects to benefit the communities
which host Lonmin`s operations in South Africa.
Technical Assistance and Advisory Services Programme
Lonmin and the IFC will design and implement a three year comprehensive
Technical Assistance and Advisory Services Programme in support of Lonmin`s
sustainable community development programme for the communities on and
around Lonmin`s operations in South Africa. This Programme will also
support Lonmin`s ongoing commitments in its Social and Labour Plans. The
total cost of this Programme will be around US$5.9 million and will be split
equally between Lonmin and the IFC.
The Technical Assistance and Advisory Services Programme splits into four
areas:
BEE Supplier Development
The IFC will partner with Lonmin to implement a supplier development
programme. This programme will aim to expand Lonmin`s BEE and local
supplier base by identifying new suppliers, increase the competitiveness of
BEE companies through training and capacity building and broker involvement
and co-operation with other regional mining operators and/or industry
clusters to catalyse small and medium sized enterprise (including BEE)
development in North West Province and facilitate supplier access to
finance.
Gender Mainstreaming
The IFC will assist Lonmin with the fine-tuning of its gender mainstreaming
strategy and help implement mechanisms for the increased participation of
females within Lonmin`s operations.
HIV/AIDS
Lonmin and the IFC will work together to jointly design and implement
comprehensive HIV/AIDS prevention programmes to enhance the existing
programmes operated by Lonmin.
Community Development Programme
The IFC will help Lonmin to facilitate local stakeholder dialogue and assist
local stakeholders, particularly assisting Lonmin to further develop its
working partnerships with local municipalities and tribal authorities to
increase the capacity to effectively plan and implement community
development projects.
END
Notes to Editors
IFC, the private sector arm of the World Bank Group, promotes open and
competitive markets in developing countries. IFC supports sustainable
private sector companies and other partners in generating productive jobs
and delivering basic services, so that people have opportunities to escape
poverty and improve their lives. Through FY06, IFC Financial Products has
committed more than $56 billion in funding for private sector investments
and mobilized an additional $25 billion in syndications for 3,531 companies
in 140 developing countries. IFC Advisory Services and donor partners have
provided more than $1 billion in program support to build small enterprises,
to accelerate private participation in infrastructure, to improve the
business enabling environment, to increase access to finance, and to
strengthen environmental and social sustainability. For more information,
please visit www.ifc.org.
Date: 03/04/2007 07:59:53 Produced by the JSE SENS Department.
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