LONMIN/ IMPLATS - LONMIN AND IMPLATS ANNOUNCE FURTHER PROGRESS ON THE SALE BY
IMPLATS OF ITS ENTIRE 27.1% STAKE IN EACH OF WESTERN PLATINUM LIMITED AND
EASTERN PLATINUM LIMITED (TOGETHER `Lonplats`) AND THE ESTABLISHMENT OF INCWALA
(Incorporated in the United Kingdom)
Share code : LON
ISIN code : GB0031192486
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number : 1959/001979/06
Share code : IMP / IMPO
ISIN ZAE 000003554
LONMIN AND IMPLATS ANNOUNCE FURTHER PROGRESS ON THE SALE BY IMPLATS OF ITS
ENTIRE 27.1% STAKE IN EACH OF WESTERN PLATINUM LIMITED AND EASTERN PLATINUM
LIMITED (TOGETHER `Lonplats`) AND THE ESTABLISHMENT OF INCWALA RESOURCES
Further to our announcement of May 12th 2004, Implats and Lonmin are pleased to
announce that the outstanding US$30 million of funding from Historically
Disadvantaged South Africans (`HDSA`) has now been sourced.
Andisa Capital, Dema Group and Vantage Capital will increase their respective
interests in Incwala Resources by an equal amount having secured strong
financial support for an additional US$10 million each of funding. (ie. All
three consortia will raise a total of US$20 million each.)
In addition, to facilitate the significant increased involvement of Lonplats`
employees, it is currently envisaged that Lonmin will guarantee US$5 million of
the additional funds to be obtained by each of Andisa, Dema and Vantage and that
a Lonplats Employee Trust (`LET`) will be established which will hold a 25%
equity interest in each of the Andisa, Dema and Vantage consortia that will
invest in Incwala Resources. The sole beneficiary of the LET will be Masakhane
Provident Fund, the ultimate beneficiaries of which are Lonplats employees.
Masakhane`s membership is approaching 20 000, consisting exclusively of Lonplats
employees, almost all of whom are HDSA.
All principal HDSA investors have signed non-legally binding letters and
memoranda of understanding to record the above and the process of selecting HDSA
investors is now complete.
The result of these developments is that the Andisa, Dema and Vantage consortia
will increase their interest in Incwala Resources to some 16% each, in respect
of which the LET will have a 25% interest. This equates to the LET having an
indirect equity interest in Incwala Resources of some 12% valued at
approximately US$45 million. Together with the other shareholders previously
announced, Incwala Resources will have a significant broad-base of shareholders
and remain over 52% HDSA controlled from the outset. The remaining approximate
48% will be held by Lonmin and the Industrial Development Corporation.
Implats and Lonmin are delighted that all elements of the transaction are now in
place and are working towards concluding legally binding agreements with all
parties and obtaining approvals from Lonmin shareholders and the relevant
regulatory authorities. Implats and Lonmin have filed the merger notice in
respect of the transaction with the South African Competition Commission.
It is expected that the transaction will be completed in the third quarter of
2004. Shareholders are advised to continue to exercise caution when dealing in
Impala`s securities until a further announcement is made.
Ian Farmer, Corp Development Director +27 11 268 6318
Albert Jamieson, Business Development Director Lonplats
+27 11 268 6318
Anthony Cardew/Olivia Gallimore, Cardew Chancery +44 207 930 0777
David Brown, Financial Director +27 11 481 3926
Cathie Markus, Corp Affairs Director +27 11 481 3925
June 15, 2004
Sponsor: Deutsche Securities
Date: 15/06/2004 03:45:02 PM Produced by the JSE SENS Department