Lonmin ends Canada prospects as it cleans house before Sibanye takeover – by Alan Seccombe (Business Day – October 1, 2018)


By selling its 6.8% stake in Wallbridge, Lonmin is ensuring a stronger balance sheet and a tidier company for the new owners

As the takeover of Lonmin by Sibanye-Stillwater draws closer, the world’s third-largest platinum miner continues to tidy its investment portfolio and add cash to its balance sheet.

Lonmin has agreed to sell its 6.8% stake in Canada’s Wallbridge Mining for $4m to Eric Sprott, who will now hold more than 16% of the exploration and mining company through one of his companies.

Lonmin is the subject of a friendly all-share takeover bid by Sibanye, with key conditions including approval from SA’s Competition Tribunal following a highly conditional recommendation from the Competition Commission, yes votes from shareholders in both companies and court approval in the UK.

Both Lonmin CEO Ben Magara and Sibanye CEO Neal Froneman have recently said they expect the transaction to close before the end of 2018, creating one of the world’s largest PGM companies behind Anglo American Platinum.

Lonmin sold a gold asset in Kenya in 2016 for $5m. It then sold its exploration assets in Northern Ireland for $100,000 and an annual 2% net smelter payment in a 2017 transaction. More recently it has started the sales process of its 50% stake in Petrozim Line for $14.75m to National Oil Infrastructure Company of Zimbabwe.

For the rest of this article: https://www.businesslive.co.za/bd/companies/mining/2018-10-01-lonmin-ends-canada-prospects-as-it-cleans-house-before-sibanye-takeover/

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