| Thu 16 Oct 2008, 11:39 | | LAF - Lonrho - Lonrho Mining Placement Of Shares And Options To Raise $3.07 |
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LAF
LOLAF
LAF - Lonrho - Lonrho Mining Placement Of Shares And Options To Raise $3.07
Million, Appointment Of Director, Issue Of Options
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
(`Lonrho` or the `Company`)
LONRHO MINING PLACEMENT OF SHARES AND OPTIONS TO RAISE $3.07 MILLION,
APPOINTMENT OF DIRECTOR, ISSUE OF OPTIONS
Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to note that Lonrho Mining Limited (formerly known as
Nare Diamonds), which is owned 24.16% by Lonrho, has made the following
announcement to the Australian Securities Exchange this morning:
Placement of shares and application for options
Lonrho Mining Limited (ASX: LOM) ("Lonrho Mining" or the "Company") is pleased
to announce that it has completed the placement of 48,189,991 ordinary shares in
the Company (the Placement) to professional and sophisticated clients of Indian
Ocean Capital and Argonaut Securities to raise $2.89 million (before issue
costs).
Applications have been received for 48,189,991 options over ordinary shares
exercisable at $0.15 expiring 30 June 2012 for consideration of $0.00375 per
option (to raise a further $0.18 million), and a further 48,189,991 options over
ordinary shares exercisable at $0.15 expiring 30 June 2012 for nil
consideration. The issue of these options is subject to shareholder approval.
Lonrho Plc has participated in the Placement and applied for options to the
extent of $0.9 million, representing 14,166,666 shares, 14,166,666 options for
$0.00375 each and 14,166,666 options for nil consideration.
The Placement has been made pursuant to the Company`s existing capacity under
ASX Listing Rule 7.1, following approval by shareholders of the Company in
General Meeting on 30 July 2008 (Resolution 3). The Company`s Appendix 3B has
been lodged with this announcement.
The Company gives notice under section 708A of the Corporations Act as follows:
1. The shares referred to above were issued without disclosure to investors
under Part 6D.2 of the Corporations Act;
2. The Company, as at the date of this notice has complied with: - the
provisions of Chapter 2M of the Corporations Act, section 674 of the
Corporations Act; and
3. There is no excluded information for the purposes of sections 708(7) and
(8) of the Corporations Act as at the date of this notice.
The Company intends to use the funds raised towards:
1. Exploration and development of the Lulo project in Angola;
2. Continuing to fund the Schmidtsdrift operation until completion of the
sale; and
3. General working capital purposes.
Appointment of Matthew Fitzgerald as director
The Company is pleased to announce the appointment of Mr Matthew Fitzgerald as a
director of the Company. Mr Fitzgerald is a chartered accountant with extensive
experience in the resources industry. He began his career in the Assurance &
Advisory Division of KPMG, before joining ASX-listed Kimberley Diamond Company
NL and Blina Diamonds NL in 2003, where he held the position of Chief Financial
Officer and Director until July 2008.
Issue of options
The Company will issue options in the Company exercisable at $0.15 expiring 30
June 2012 for nil consideration, subject to shareholder approval:
Number of
options
Mr Miles Kennedy (Director) 5,000,000
Mr John Firth (Director) 5,000,000
Mr Matthew Fitzgerald (Director) 4,000,000
Mr David Lenigas (Director) 5,000,000
Mr Geoffrey White (Director) 5,000,000
Ms Jean Mathie (Company Secretary) 750,000
Indian Ocean Capital (Broker) 10,000,000
Argonaut Securities (Broker) 5,250,000
40,000,000
Notice of Meeting
The Company will in due course issue a Notice of Meeting to seek shareholder
approval for the:
1. Issue of options for which applications have been received; and
2. Issue of options to directors, the company secretary and brokers to the
Placement.
MILES KENNEDY
DIRECTOR
LONRHO ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
Emma de Borchgrave, Executive Director +44 (0)7867 785 177
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743 6375
+44 (0) 7841 672831
Collins Stewart Europe : NOMAD to Lonrho
Hugh Field / Ned Fox +44 (0) 20 7523 8350
NOTES TO EDITORS
About Lulo
The Lulo Project is located on the eastern margin of the Cuango River catchment
approximately 650km east of Luanda within the Lunda Norte Province of
northeastern Angola.
The Company has signed Joint Venture Agreements with Endiama, the national
diamond company of Angola and exclusive concessionary for Angolan diamond mining
rights, to develop the highly prospective 3,000kmSquared Lulo Diamond Concession
in Angola.
On all kimberlite deposits Lonrho`s participating interest will initially be 39%
of the joint venture which will decrease to 30% after recoupment of its
investment in the Project. On all alluvial deposits Lonrho`s participating
interest will be 40% in the joint venture. Under the terms of the joint venture
agreement with Endiama, Lonrho has paid a cash deposit of US$1.4 million (A$1.54
million) which is refundable after exploration expenditure of an equal amount by
Lonrho within nine months after signing the joint venture agreement. Lonrho is
also required to fund a work programme for which the first year of exploration
expenditure will total US$6 million (A$7 million). Under the terms of the joint
venture, the Company will also receive in priority the funds it has expended on
exploration from future cash flow from mining operations.
For more information please visit: www.lonrhomining.com
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa. The Company`s shares are traded on the London AIM
stock exchange (LONR). Lonrho is strategically focused on the development of
business opportunities in infrastructure, transportation, support services,
hotels and natural resources. The Company has over 19,000 shareholders and
substantial institutional backing to support its mandate to build a profitable
business that plays a fundamental role in the development of the African
economy.
Since 2006, the Company has invested in or acquired control of:
Hotel Cardoso - www.hotelcardoso.co.mz (retained)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
Date: 16/10/2008 11:39:02 Produced by the JSE SENS Department.
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