Lonmin prices discounted cash call

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LonminWhistle REUTERS Striking miners outside Lonmin's Marikana mine.

Platinum miner Lonmin has priced a $817 million rights issue at a discount of 45 percent, pushing ahead with a cash call to slash its debt and fund a recovery, after it was battered by six weeks of strikes.

Lonmin, the world's third-largest platinum miner, said it would issue 9 new shares for every 5 existing, a total of up to 365 million shares at 140 pence or 19.5 South African rand.

The UK price represents a 44.4 percent discount to the theoretica ex-rights price (TERP) of an existing share. In South African rand, the discount is 45 percent.

Lonmin booked $755 million of special costs, including $159 million for the costs of the strike. That dragged it to a full-year loss before tax of $698 million. - Reuters



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