Lonmin Plc and Helix Resources NL - Proposed Issue of Helix Shares, Joint
Venture and Strategic Alliance
Lonmin Plc (Lonmin) is pleased to announce that it has signed a Memorandum
of Understanding (MOU) with Helix Resources NL (Helix), a company
incorporated in Western Australia, covering;
* Lonmin taking a private equity placement of six million Helix shares at a
price of Australian dollars (A$) 1.30 per share, together with the issue of
options over 2 million Helix shares exercisable at A$1.00 by 31 October
2002. Lonmin will also participate in Helix's pro-rata options issue which
will entitle Lonmin to options over a further 2 million Helix shares
exercisable at A$1.00. The placement of fully paid shares would provide
Lonmin with an initial equity of 11.8% in the capital of Helix. The
placement price recognises costs already incurred by Helix in progressing
the Munni Munni project to full Feasibility Study (FFS) stage. Lonmin has
agreed that at no time will its equity in Helix exceed 19.9%.
* Additionally, Lonmin being entitled to a 50 per cent interest in the new
Munni Munni joint venture by providing funding and technical assistance to
deliver a FFS. Lonmin will provide funding of A$8.0 million over the first
15 months from the date of formation of the joint venture.
* Lonmin having the right to purchase the products from Munni Munni.
* A strategic alliance for the exploration of PGM's generally and for the
progressing of Helix's Munni Munni project in particular.
The parties expect Board approvals and completion of the necessary
documentation to give effect to the terms outlined in the MOU within the
next month.
For further information please contact Anthony Cardew or Jon Simmons at
Cardew and Co; tel: 020 7930 0777, or Ian Farmer/Chris Davies at 020 7201
6000.
Reference may also be made to the website www.helix.net.au.
END
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