16 Oct 2008 09:11
16 October 2008
LONRHO PLC
('Lonrho' or the 'Company')
LONRHO MINING PLACEMENT OF SHARES AND OPTIONS TO RAISE $3.07 MILLION, APPOINTMENT OF DIRECTOR, ISSUE OF OPTIONS
Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to note that Lonrho Mining Limited (formerly known as Nare Diamonds), which is owned 24.16% by Lonrho, has made the following announcement to the Australian Securities Exchange this morning:
Placement of shares and application for options
Lonrho Mining Limited (ASX: LOM) ("Lonrho Mining" or the "Company") is pleased to announce that it has completed the placement of 48,189,991 ordinary shares in the Company (the Placement) to professional and sophisticated clients of Indian Ocean Capital and Argonaut Securities to raise $2.89 million (before issue costs).
Applications have been received for 48,189,991 options over ordinary shares exercisable at $0.15 expiring 30 June 2012 for consideration of $0.00375 per option (to raise a further $0.18 million), and a further 48,189,991 options over ordinary shares exercisable at $0.15 expiring 30 June 2012 for nil consideration. The issue of these options is subject to shareholder approval.
Lonrho Plc has participated in the Placement and applied for options to the extent of $0.9 million, representing 14,166,666 shares, 14,166,666 options for $0.00375 each and 14,166,666 options for nil consideration.
The Placement has been made pursuant to the Company's existing capacity under ASX Listing Rule 7.1, following approval by shareholders of the Company in General Meeting on 30 July 2008 (Resolution 3). The Company's Appendix 3B has been lodged with this announcement.
The Company gives notice under section 708A of the Corporations Act as follows:
The Company intends to use the funds raised towards:
Appointment of Matthew Fitzgerald as director
The Company is pleased to announce the appointment of Mr Matthew Fitzgerald as a director of the Company. Mr Fitzgerald is a chartered accountant with extensive experience in the resources industry. He began his career in the Assurance & Advisory Division of KPMG, before joining ASX-listed Kimberley Diamond Company NL and Blina Diamonds NL in 2003, where he held the position of Chief Financial Officer and Director until July 2008.
Issue of options
The Company will issue options in the Company exercisable at $0.15 expiring 30 June 2012 for nil consideration, subject to shareholder approval:
| Number of options | |
| Mr Miles Kennedy (Director) | 5,000,000 |
| Mr John Firth (Director) | 5,000,000 |
| Mr Matthew Fitzgerald (Director) | 4,000,000 |
| Mr David Lenigas (Director) | 5,000,000 |
| Mr Geoffrey White (Director) | 5,000,000 |
| Ms Jean Mathie (Company Secretary) | 750,000 |
| Indian Ocean Capital (Broker) | 10,000,000 |
| Argonaut Securities (Broker) | 5,250,000 |
| 40,000,000 |
Notice of Meeting
The Company will in due course issue a Notice of Meeting to seek shareholder approval for the:
Issue of options for which applications have been received; and
Issue of options to directors, the company secretary and brokers to the Placement.
MILES KENNEDY
DIRECTOR
LONRHO ENQUIRIES
| Lonrho Plc | +44 (0)20 7016 5105 |
| David Lenigas, Executive Chairman | +44 (0)7881 825 378 |
| Geoffrey White, Chief Executive Officer | +44 (0)7717 307 308 |
| Emma de Borchgrave, Executive Director | +44 (0)7867 785 177 |
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| Pelham PR |
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| Charles Vivian | +44 (0) 20 7743 6672 |
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| +44 (0) 7977 297903 |
| James MacFarlane | +44 (0) 20 7743 6375 |
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| +44 (0) 7841 672831 |
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| Collins Stewart Europe : NOMAD to Lonrho |
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| Hugh Field / Ned Fox | +44 (0) 20 7523 8350 |
NOTES TO EDITORS
About Lulo
The Lulo Project is located on the eastern margin of the Cuango River catchment approximately 650km east of Luanda within the Lunda Norte Province of northeastern Angola.
The Company has signed Joint Venture Agreements with Endiama, the national diamond company of Angola and exclusive concessionary for Angolan diamond mining rights, to develop the highly prospective 3,000km² Lulo Diamond Concession in Angola.
On all kimberlite deposits Lonrho's participating interest will initially be 39% of the joint venture which will decrease to 30% after recoupment of its investment in the Project. On all alluvial deposits Lonrho's participating interest will be 40% in the joint venture. Under the terms of the joint venture agreement with Endiama, Lonrho has paid a cash deposit of US$1.4 million (A$1.54 million) which is refundable after exploration expenditure of an equal amount by Lonrho within nine months after signing the joint venture agreement. Lonrho is also required to fund a work programme for which the first year of exploration expenditure will total US$6 million (A$7 million). Under the terms of the joint venture, the Company will also receive in priority the funds it has expended on exploration from future cash flow from mining operations.
For more information please visit: www.lonrhomining.com
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company's shares are traded on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services, hotels and natural resources. The Company has over 19,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
Hotel Cardoso - www.hotelcardoso.co.mz (retained)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk