LONDON, UK, Jan. 17, 2012 /CNW/ - On January 17, 2012 Lonmin PLC ("Lonmin") and Wallbridge Mining Company Limited ("Wallbridge") entered into a subscription agreement pursuant to which a wholly-owned subsidiary of Lonmin, 6529241 Canada Inc., subscribed for 13,157,895 units ("Units") of Wallbridge at a subscription price of Cdn$0.19 per Unit (the "Private Placement"). Each Unit is comprised of one common share in the capital of Wallbridge (a "Share") and one-half of one common share purchase warrant (each whole common share purchase warrant being hereinafter referred to as a "Warrant"). Each Warrant entitles the holder to purchase one whole common share in the capital of Wallbridge at an exercise price of Cdn$0.40 for a period ending on December 31, 2012. The Private Placement closed on January 17, 2012.
The 13,157,895 Shares and 6,578,948 Warrants purchased pursuant to the Private Placement together constitute approximately 12.8% of the issued and outstanding Shares (assuming the exercise of all of the Warrants). Following the completion of the Private Placement, Lonmin beneficially owns directly or indirectly, or controls or directs, an aggregate of 23,957,895 Shares and 6,578,948 Warrants, which together constitute approximately 19.8% of the issued and outstanding Shares (assuming the exercise of all of the Warrants).
The Private Placement was completed privately and not through the facilities of any stock exchange or any other marketplace.
Lonmin acquired the Units for investment purposes and not for the purpose of influencing management or acquiring control of or over Wallbridge. Lonmin may from time to time, depending on market and other conditions, increase or decrease its holdings of Shares or, as applicable, other securities of Wallbridge. Lonmin acquired the Units in reliance upon the accredited investor exemption in section 2.3 of National Instrument 45-106 - Prospectus and Registration Exemptions.
Disclosure regarding the percentage of outstanding Shares held by Lonmin is based on information provided by Wallbridge.
For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the Private Placement, please go to the Wallbridge profile on the SEDAR website.
Note on Forward-Looking Information
This press release includes certain forward-looking information, including statements relating to Lonmin's interests in Wallbridge and its future intentions in respect thereof, using words including "may" and similar expressions, which are intended to identify these forward-looking statements. This forward-looking information reflects current views with respect to current and future events and circumstances and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions, including those relating to changes in business, performance and markets. Actual results may differ materially from information contained in the forward-looking information as a result of a number of those factors. Forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Lonmin undertakes no obligation to publicly update or revise any forward-looking information contained in this press release, except as required by applicable laws.
For further information:
| Cardew Group
+44 (0)20 7930 0777
| Inzalo Communications
Bridget von Holdt
+27 11 646 9992