Lonmin Plc And Muskox Minerals Corporation - Propo
Joint Venture
LONMIN PLC
SHARE CODE: LON
ISIN CODE: GB0002568144
PRESS RELEASE
17 SEPTEMBER 2001
Lonmin Plc (Lonmin) is pleased to announce it has signed a Memorandum of
Understanding (MOU) with Muskox Minerals Corporation (Muskox) a company
incorporated in British Colombia, Canada:
Lonmin will purchase by way of private placement 1 200 000 units of Muskox
at a price of C$1.00 per unit. Each unit will consist of one common share
and one full purchase warrant exercisable at C$2.00 with a term of four
years. The placement of fully paid shares would provide Lonmin with an
initial equity of approximately 4% in the capital of Muskox. Lonmin's equity
in Muskox will not exceed 9.9% for a period of four years.
Lonmin will have an entitlement to a 50% interest in the new Muskox Project
Joint Venture (JV) through funding C$18.8 million in exploration over a four
year period. Lonmin can earn a 25% interest in the JV through funding C$10.0
million in exploration and an additional 25% interest in the JV in stages,
by funding a further C$8.8 million in exploration. Lonmin has the option of
earning a further 10% interest in the JV by funding and producing a full
feasibility study and would obtain a minimum of a further 5% interest in the
JV by arranging development finance of up to C$500 million. Lonmin will
provide technical assistance to the JV.
Lonmin will have the right to purchase the products from the Joint Venture.
The MOU is non-binding and the parties expect Board approvals and completion
of the necessary documentation to give effect to the terms outlined in the
MOU by the end of October.
For further information please contact:
Ian Farmer, Lonmin : +44 207 201 6000
Albert Jamieson, Lonmin : +27 11 516 1300
Anthony Cardew, Cardew & Co. : +44 207 930 0777
Reference may also be made to the Muskox website: www.muskoxminerals.com
END
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