LON - Lonmin - Investment in Wallbridge Mining Com
LON
LOLMI
LON - Lonmin - Investment in Wallbridge Mining Company Limited
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")
7 June 2007
Investment in Wallbridge Mining Company Limited
Lonmin is pleased to announce that it has agreed, subject to completion of
satisfactory legal due diligence and the approval of the Toronto Stock Exchange,
to purchase 10.8 million units in Wallbridge Mining Company Limited
("Wallbridge") at a price of C$0.60 per unit for a total consideration of C$6.5
million (US$6.1 million). This represents approximately 18% of the issued
capital of Wallbridge on a fully diluted basis calculated immediately after the
completion of this transaction (assuming the exercise of all warrants). Each
unit consists of one common share in the capital of Wallbridge ("Common Share")
and one half common share purchase warrant ("Warrant"). Each full Warrant
entitles Lonmin to purchase one Common Share at an exercise price of C$1.00 for
a period of three years from the date of issuance.
Lonmin and Wallbridge formed a joint venture in January 2002 covering a number
of exploration properties in the Sudbury Basin all with interesting Platinum
Group Metal (PGM) potential. Preliminary results have confirmed the potential
for PGM mineralisation on Wallbridge`s properties and today`s agreement cements
the ongoing relationship between Lonmin and Wallbridge. In exchange for Lonmin`s
investment, Wallbridge has agreed to devote a minimum of 60% of the subscription
proceeds to fund direct exploration work to advance Wallbridge`s North Range
Properties, a project premised on the concept that large scale structures which
emanate from the Sudbury Complex have the potential to extend the limits of
current PGM - nickel - copper mineralisation on the northern region of the
basin.
As part of the agreement Lonmin will have the option to acquire an interest in
and enter into joint ventures on the North Range Properties. In addition Lonmin
has been granted a first right of refusal on all of Wallbridge`s properties
within the Sudbury area for the next 5 years, subject to any existing agreements
with other parties.
Enquiries:
Alex Shorland-Ball +44 (0)207 201 6060
Vice President, Investor Relations or +44 7917 038 684
& Communications
Date: 07/06/2007 08:00:04 Produced by the JSE SENS Department.
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