Lonmin To Buy Anglo American Platinum's 42.5 Percent Stake In Pandora JV

(RTTNews) - Platinum producer Lonmin plc (LNMIF.PK, LMI.L) announced that on Thursday it entered into a conditional Sale and Purchase Agreement to buy Anglo American Platinum's 42.5 percent of the Pandora Joint Venture. Lonmin currently expects that the aggregate consideration payable to AAP will be R400 million.

The purchase is for a deferred cash payment of 20 percent of the distributable free cash flows generated by the Pandora E3 operations on an annual basis for a period of six years, subject to a minimum deferred consideration of R400 million in total.

The deal will increase the Company's ownership interest in the Pandora JV to 92.5 percent.

The Pandora JV is currently held 50 percent by Lonmin's subsidiary, Eastern Platinum Limited, 42.5 percent by AAP through Rustenburg Platinum Limited and 7.5 percent by Northam Limited through Mvelaphanda Resources Proprietary Limited.

The Company has also entered into a 36 months' rental agreement with AAP for the Baobab concentrator in Limpopo, conditional upon the deal completing. AAP will pay Lonmin, with immediate effect, an annual rental fee of approximately R46 million.