1st Feb 2007 07:00
Lonmin PLC01 February 2007 Lonmin Plc Acquisition of AfriOre - Payment and Change of Control Lonmin Plc (''Lonmin'') today announces that it has paid for the common shares(the "Shares") in AfriOre Limited ("AfriOre") deposited and taken up on 26January 2007. The approximately 49.4 million Shares taken up and paid for byLonmin represents approximately 94% of the aggregate number of Shares issued andoutstanding, giving Lonmin direct control of AfriOre. Lonmin has now taken over control of the operations of AfriOre, including itsPGM assets at Akanani. All of the former directors of AfriOre have resigned fromthe board and have been replaced by Brad Mills, John Robinson, Ian Farmer andJack Jones, who are all directors or senior officers of Lonmin. Commenting on the completion of the acquisition, Brad Mills, Chief Executive ofLonmin, said: 'We believe that Akanani is a high quality South African PGM project withconsiderable expansion potential. We look forward to working with the BEEpartners, the DME and the local community to move the project through thefeasibility stage, to complete permitting, obtain a mining licence and beginmine development.' The Akanani deposit has a strike length of around 9 km and the Platreef ore bodylies at a depth of between 800 metres and 2,000 metres. The average true widthof the targeted P2 horizon is 19 metres. Akanani has reported total inferred P2resources of 249.1 million tonnes containing 33.7 million ounces of PGMs at agrade of 4.2 g/t - 3 PGE+Au. In-fill drilling will be undertaken to improve thelevel of confidence in the current resource base while exploration drilling willexamine the potential of the centre and north of the Akanani lease area. Lonmin's preliminary evaluation suggests that the current resource could supportan initial mine development producing around 500,000 ounces of PGMs per anum,including around 250,000 ounces of platinum. A pre-feasibility study,commissioned by AfriOre and undertaken by consultant engineers SRK, is dueshortly. This will provide the groundwork for a full feasibility study, a mininglicence application and mine development. Attributable capital expenditure formine, concentrator and infrastructure development is currently estimated atUS$600-700 million. Lonmin's C$8.75 cash offer for AfriOre has been extended to 1:00 p.m. (Torontotime) on 8 February 2007 to give shareholders of AfriOre who have not tenderedtheir Shares under the Offer an opportunity to do so. As Lonmin has acquiredover 90% of the issued and outstanding Shares, it will cause AfriOre to use thestatutory procedure for the redemption of the outstanding Shares not held byLonmin immediately after the expiry of the Offer, as permitted under theapplicable laws of the British Virgin Islands. For further information about tendering procedures shareholders of AfriOre maycontact Innisfree M&A Incorporated at 1-888-750-5834 (English speakers in Canadaand U.S.), 1-877-825-8777 (French speakers in Canada and U.S.) or00800-7710-9970 (from the United Kingdom and other European Union countries aswell as Switzerland and Norway). Banks and brokers may call collect at1-212-750-5833. Enquiries: Alex Shorland-Ball +44 (0) 20 7201 6060 Vice President, Investor Relations & Communications Forward Looking Statements: This announcement may include forward-looking statements. All statements otherthan statements of historical fact included in this announcement, includingwithout limitation those regarding Lonmin's plans, objectives and expectedperformance, are forward-looking statements. Lonmin has based theseforward-looking statements on its current expectations and projections aboutfuture events, including numerous assumptions regarding its present and futurebusiness strategies, operations, and the environment in which it will operate inthe future. Forward-looking statements generally can be identified by the use offorward-looking terminology such as 'ambition', 'may', 'will', 'could', 'would','expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek' or'continue', or negative forms or variations of similar terminology. Suchforward-looking statements involve known and unknown risks, uncertainties,assumptions and other factors related to Lonmin, including, among other factors:(1) the risk that the businesses of Lonmin and AfriOre will not be integratedsuccessfully; (2) material adverse changes in economic conditions generally orin relevant markets or industries in particular; (3) fluctuations in demand andpricing in the mineral resource industry and fluctuations in exchange rates; (4)future regulatory and legislative actions and conditions affecting Lonmin's andAfriOre's operating areas or licensing; (5) obtaining and retaining skilledworkers and key executives; and (6) acts of war and terrorism. By their nature,forward-looking statements involve risks, uncertainties and assumptions and manyrelate to factors which are beyond Lonmin's control, such as future marketconditions and the behaviour of other market participants. Actual results maydiffer materially from those expressed in forward-looking statements. Giventhese risks, uncertainties, and assumptions, you are cautioned not to put unduereliance on any forward-looking statements. In addition, the inclusion of suchforward-looking statements should under no circumstances be regarded as arepresentation by Lonmin that Lonmin will achieve any results set out in suchstatements or that the underlying assumptions used will in fact be the case.Other than as required by applicable law or the applicable rules of any exchangeon which Lonmin's securities may be listed, Lonmin has no intention orobligation to update or revise any forward-looking statements included in thisannouncement after the release of this announcement. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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