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Lonmin places 96.4% of rights issue

Reuters | Thu, 04 Jun 2009 11:16
[miningmx.com] -- Lonmin Plc, the world's third-biggest platinum producer, said shareholders took up 96.38 percent of its $457 million rights issue.

Lonmin announced a two-for-nine rights issue on May 11 to pay off debt and bolster its balance sheet during a downturn that has hammered platinum prices.

It said in a statement on Thursday that Citigroup and J.P. Morgan Cazenove will seek investors for the balance of shares not taken up.

The new shares are due to begin trading on Thursday.

The London-listed firm, which has operations in South Africa, resorted to the cash call because of the weak outlook for the platinum sector, whose main customer is the hard-hit auto sector.

The shares, which have surged by three-quarters this year, on a partial rebound in platinum prices, closed at 1,510 pence on Wednesday, well above the 900 pence price of the rights issue.

The shares are still down more than half since last September.




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