| Wed 15 Jun 2005, 8:18 | | Lonmin Plc - Further Re Acquisition |
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Lonmin Plc - Further Re Acquisition
Lonmin Plc
Isin Code: GB0031192486
Share code: LON
LONMIN COMPLETES ACQUISITION OF SOUTHERN PLATINUM
Renames Messina mine Lonmin Platinum Limpopo
Lonmin Plc (`Lonmin`) announces today that its wholly owned subsidiary, Lonmin
Investments Canada Inc. (`Lonmin Investments`), has paid for the common shares
in the capital of Southern Platinum Corp. (TSX:SPC) (`Southern Platinum`)
deposited and taken up on 10 June 2005 in connection with Lonmin Investment`s
offer (the `Offer`) to acquire all of the issued and outstanding common shares
(the `Shares`) in the capital of Southern Platinum.
The 81,027,739 Shares taken up and paid for by Lonmin Investments represent
approximately 92.6% of the aggregate number of Shares issued and outstanding,
giving Lonmin an indirect controlling interest in Southern Platinum. The Offer
has been extended to 5:00 p.m. (Toronto time) on 28 June 2005 to allow
shareholders who have not had the opportunity to tender their Shares under the
Offer to do so.
Lonmin has now taken over control of the Messina mine operations, which will be
renamed Lonmin Platinum Limpopo with immediate effect. Lonmin has also completed
the acquisition of the offtake agreement with Impala Platinum.
All the former directors of Southern Platinum will be resigning from the board
and will be replaced by Brad Mills, John Robinson, Ian Farmer, Peter Godsoe, and
Jack Jones who are all directors or senior officers of Lonmin. Lonmin will also
appoint a further resident Canadian independent director.
Ricus Grimbeek, currently Vice President, SHEC, Lonmin, has been appointed
President, Lonmin Platinum Limpopo. Ricus has been heading Lonmin`s integration
planning team over the last two months and will now assume responsibility for
the mine and the integration process.
Lonmin Platinum Limpopo has a strike length of 23 kilometres and an attributable
PGM resource base of 20 million ounces (5PGE+Au) to a depth of 1,000 metres.
The current mining operations at Lonmin Platinum Limpopo cover a strike length 4
kilometres. Over the next 18 months, Lonmin plans to re-engineer these
operations to change the mining method to long hole stoping. Production from
Lonmin Platinum Limpopo is targeted to increase from the current 45,000 ounces
of platinum per annum to 75,000 ounces of platinum for the financial year to
September 2007. Capital expenditure over the next three years to achieve this
level of production will be around US$75 million.
Commenting on the completion of the acquisition, Brad Mills, Chief Executive
said:
`I am delighted that we have managed to complete the acquisition of Southern
Platinum and take over the running of Messina. The newly named Lonmin Platinum
Limpopo is entering a new era in its development on a financially secure basis
and we look forward to working with its employees to realise the potential of
the Limpopo resource base.`
****************
This press release includes forward-looking statements. All statements other
than statements of historical fact included in this press release, and all
statements regarding plans, objectives and expected performance, are forward-
looking statements. These forward-looking statements have been based on current
expectations and projections about future events, including numerous
assumptions. Forward-looking statements generally can be identified by the use
of forward-looking terminology such as `ambition`, `may`, `will`, `expect`,
`intend`, `estimate`, `anticipate`, `believe`, `plan`, `seek` or `continue` or
negative forms or variations of similar terminology. Such forward-looking
statements involve known and unknown risks, uncertainties, assumptions and other
factors related to Lonmin Plc, Lonmin Investments and Southern Platinum Corp.
Forward-looking statements involve risks, uncertainties and assumptions. Actual
results may differ materially from those expressed in forward-looking
statements. Given these risks, uncertainties and assumptions, you are cautioned
not to put undue reliance on any forward-looking statements. In addition, the
inclusion of such forward-looking statements should under no circumstances be
regarded as a representation by Lonmin Plc or Lonmin Investments that either
will achieve any results set out in such statements or that the underlying
assumptions used will in fact be the case.
For Further Information:
Lonmin Plc:
Alex Shorland-Ball, Vice President Investor Relations & Communications - +44 20
7201 6060
Cardew Group:
Anthony Cardew / Nadja Vetter - +44 20 7930 0777
Date: 15/06/2005 08:00:06 AM
Produced by the JSE SENS Department
