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LON - Lonmin - Investment in Wallbridge Mining Company Limited

Release Date: 07/06/2007 08:00
Code(s): LON
Wrap Text

LON - Lonmin - Investment in Wallbridge Mining Company Limited Lonmin Plc (Incorporated in England and Wales) (Registered in the Republic of South Africa under registration number 1969/000015/10) JSE code: LON Issuer Code: LOLMI & ISIN: GB0031192486 ("Lonmin") 7 June 2007 Investment in Wallbridge Mining Company Limited Lonmin is pleased to announce that it has agreed, subject to completion of satisfactory 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$6.5 million (US$6.1 million). This represents approximately 18% of the issued capital of Wallbridge on a fully diluted basis calculated immediately after the completion of this transaction (assuming the exercise of all warrants). Each unit consists of one common share in the capital of Wallbridge ("Common Share") and one half common share purchase warrant ("Warrant"). Each full Warrant entitles Lonmin to purchase one Common Share at an exercise price of C$1.00 for a period of three years from the date of issuance. Lonmin and Wallbridge formed a joint venture in January 2002 covering a number of exploration properties in the Sudbury Basin all with interesting Platinum Group Metal (PGM) potential. Preliminary results have confirmed the potential for PGM mineralisation on Wallbridge`s properties and today`s agreement cements the ongoing relationship between Lonmin and Wallbridge. In exchange for Lonmin`s investment, Wallbridge has agreed to devote a minimum of 60% of the subscription proceeds to fund direct exploration work to advance Wallbridge`s North Range Properties, a project premised on the concept that large scale structures which emanate from the Sudbury Complex have the potential to extend the limits of current PGM - nickel - copper mineralisation on the northern region of the basin. As part of the agreement Lonmin will have the option to acquire an interest in and enter into joint ventures on the North Range Properties. In addition Lonmin has been granted a first right of refusal on all of Wallbridge`s properties within the Sudbury area for the next 5 years, subject to any existing agreements with other parties. Enquiries: Alex Shorland-Ball +44 (0)207 201 6060 Vice President, Investor Relations or +44 7917 038 684 & Communications Date: 07/06/2007 08:00:04 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.

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