Shanduka to conduct feasibility review of Lonmin’s Limpopo assets

4 October 2011 (Last Updated October 4th, 2011 18:30)

Lonmin, Western Platinum (WPL), Messina and Messina Platinum Mines (MPML) have entered into a conditional share subscription agreement with Shanduka Group.

Lonmin, Western Platinum (WPL), Messina and Messina Platinum Mines (MPML) have entered into a conditional share subscription agreement with Shanduka Group.

Under the terms of the agreement, Shanduka will carry out a feasibility review on Lonmin's Limpopo division in South Africa, to assess the viability of operating and developing in the area.

On completion of the feasibility review Shanduka will subscribe for 51% shares in the issued share capital of MPML in return for R1.1bn ($134m) to MPML, thereby acquiring control and operational management of Limpopo division.

Limpopo division assets include the Baobab mine held by MPML, a 50% share in the Dwaalkop joint venture held by WPL, and the Doornvlei project and the 'Zebediela's Location' prospecting area held by MPML.