7th Jun 2007 07:02
Lonmin PLC07 June 2007 News Release Investment in Wallbridge Mining Company Limited 7 June 2007 Lonmin is pleased to announce that it has agreed, subject to completion ofsatisfactory 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$6.5million (US$6.1 million). This represents approximately 18% of the issuedcapital of Wallbridge on a fully diluted basis calculated immediately after thecompletion of this transaction (assuming the exercise of all warrants). Eachunit consists of one common share in the capital of Wallbridge ("Common Share")and one half common share purchase warrant ("Warrant"). Each full Warrantentitles Lonmin to purchase one Common Share at an exercise price of C$1.00 fora period of three years from the date of issuance. Lonmin and Wallbridge formed a joint venture in January 2002 covering a numberof exploration properties in the Sudbury Basin all with interesting PlatinumGroup Metal (PGM) potential. Preliminary results have confirmed the potentialfor PGM mineralisation on Wallbridge's properties and today's agreement cementsthe ongoing relationship between Lonmin and Wallbridge. In exchange for Lonmin'sinvestment, Wallbridge has agreed to devote a minimum of 60% of the subscriptionproceeds to fund direct exploration work to advance Wallbridge's North RangeProperties, a project premised on the concept that large scale structures whichemanate from the Sudbury Complex have the potential to extend the limits ofcurrent PGM - nickel - copper mineralisation on the northern region of thebasin. As part of the agreement Lonmin will have the option to acquire an interest inand enter into joint ventures on the North Range Properties. In addition Lonminhas been granted a first right of refusal on all of Wallbridge's propertieswithin the Sudbury area for the next 5 years, subject to any existing agreementswith other parties. Enquiries: Alex Shorland-Ball +44 (0)207 201 6060Vice President, Investor Relations or +44 7917 038 684& Communications This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonmin