Lonmin completes BEE credits

Johannesburg - Platinum producer Lonmin [JSE:LON] has completed three deals to make up its remaining 8% black economic empowerment credits, it said on Wednesday.

Chief executive Ben Magara welcomed this milestone.

"Our employees and host communities now have equity shareholding and a shared vested interest to see Lonmin succeed for their own benefit and that of our shareholders," he said in a statement.

The first transaction involved a royalty-for-equity swap with the Bapo Ba Mogale Traditional Community."

"Details of the Bapo transaction were announced on 30 July 2014 and subsequently in the general meeting circular dated 14 August 2014."

It included a swap of the Bapo community's interest in Pandora mine for Lonmin shares and the establishment of a Bapo Community Trust.

The trust would hold a 0.9% equity stake in Lonplats.

The second transaction was a profit share scheme for the benefit of employees through the establishment of the Lonplats Employees Share Ownership Trust.

This trust would acquire 3.8% of the ordinary share capital in Lonplats.

"Lonplats" refers to both Eastern Platinum Limited and Western Platinum Limited together, which are the operating subsidiaries of Lonmin.

The third was the establishment of a trust for communities living in the western portion of Lonmin's Marikana operations.

The Lonplats Marikana Community Development Trust would acquire 0.9% of the ordinary shares in Lonplats.

"Application will be made shortly to the UK listing authority and the London Stock Exchange for 13 125 436 ordinary shares of US1 each in Lonmin, to be admitted to trade on the London Stock Exchange and to be admitted to the official list," the company said.

It would also make an application to the Johannesburg Stock Exchange (JSE) for the shares to be admitted to listing and trading on the main board of the JSE.

"The new shares will be issued to the Bapo on Wednesday 3 December 2014 and it is expected that admission of the new shares will take place on Thursday 4 December 2014.

"The new shares shall rank equally with the existing issued shares of the company," it said.