Lonmin Plc Strengthens Capital Base Of Ashanti Goldfields Company Ltd

Lonmin Plc Strengthens Capital Base Of Ashanti Goldfields Company Ltd           
LONMIN PLC                                                                      
ISIN code GB0031192486                                                          
28 JUNE 2002                                                                    
Lonmin Plc Strengthens Capital Base of Ashanti Goldfields Company Ltd           
Lonmin Plc announces that it has agreed to subscribe for approximately $46.6    
million of mandatorily exchangeable notes ("MENs") issued by a subsidiary of    
and guaranteed by Ashanti Goldfields Company Limited ("Ashanti") in             
connection with Ashanti`s financial restructuring plan announced earlier        
today.                                                                          
The MENs are mandatorily exchangeable into Ashanti shares as part of a          
planned rights issue that will offer to all Ashanti shareholders the            
opportunity to take up their pro-rata share in the restructuring.               
Conversion of the MENs will be at the rights issue price, but in no event at    
a price per Ashanti share of more than $5.40. The Board of Ashanti has          
undertaken to Lonmin that it will use best efforts to launch such an issue      
within the next 18 months.  It is expected that the rights issue will be        
launched once the issues raised in the SEC`s Division of Corporation            
Finance`s comment letters concerning Ashanti`s 20F filings have been            
resolved. In the event of Ashanti being unable to launch a rights issue         
during this period, the MENs will convert into Ashanti equity at $5.40 per      
share, subject to Ashanti shareholder approval.  The Government of Ghana has    
undertaken to vote in favour of the conversion. Until the proposed rights       
issue is completed or the MENs are otherwise exchanged into Ashanti shares,     
the MENs will constitute unsecured debt of the Ashanti group repayable on 30    
June 2008, subordinated to the enlarged revolving credit facility.              
In addition, Lonmin has also subscribed for a further $28.4 million of MENs,    
which are subject to a call option granted to the Government of Ghana in        
order to enable it to maintain its stake in Ashanti.  The call option will      
expire after 18 months or, if earlier, five days prior to completion of the     
rights issue.                                                                   
Lonmin has granted put options to some of the existing warrant holders at a     
strike price of $3.00 per Ashanti share in relation to up to approximately      
13.6 million shares that will be issued as a result of early exercise of the    
existing warrants in Ashanti resulting in new equity coming into the            
company.  The put options, which are not transferable, are exercisable in       
three equal tranches on 28 April 2004, 28 October 2004 and 28 April 2005.       
Lonmin`s continuing strategy as a focused PGM mining company is unaffected      
by its participation in the restructuring of Ashanti which protects the         
value of Lonmin`s existing investment and demonstrates its continued support    
for the company.  The refinancing plan materially strengthens Ashanti`s         
capital structure, avoids excessive dilution and is expected to give all        
shareholders the opportunity to participate in Ashanti`s value potential.       
Morgan Stanley acted as financial advisor to Lonmin                             
Press enquiries: Anthony Cardew, Cardew & Co - +44(0)20 7930 0777               
Date: 28/06/2002 02:20:44 PM Produced by the SENS Department