Platinum mining company Lonmin Platinum is to buy 10.8 million shares in Wallbridge Mining Company for R44,25 million, the company has announced.

Pending approval for the deal from the Toronto Stock Exchange and completion of satisfactory due diligence, the acquisition will result in Lonmin holding an 18 per cent stake in the company.

Lonmin and Wallbridge have been undertaking exploration of a number of sites regarded as potentially rich in platinum group metals (pgms) in the Sudbury Basin in Canada., after having formed a joint venture in 2002.

A statement from Lonmin said: "Preliminary results have confirmed the potential for PGM mineralisation on Wallbridge's properties and today's agreement cements the ongoing relationship between Lonmin and Wallbridge."

Meanwhile, under the terms of the deal, Wallbridge is to earmark at least 60 per cent of the proceeds from the subscription to bankroll direct exploration of the company's North Range Properties.

Furthermore, Lonmin is entitled to acquire an interest in and enter into joint ventures on the North Range Properties, while another clause imbues the company with first right of refusal over all of Wallbridge's properties in the Subdury area for a period of five years.

News of the agreement comes as Lonmin announced this week that it plans to double its production of pgms over the next seven years.

Sources:
Investment in Wallbridge Mining Company Limited
07/07/07
http://www.lonmin.com/news.aspx?pageid=99&pressID=163

Lonmin to buy 18% stake in Canadian firm
07/07/07
http://www.miningweekly.co.za/article.php?a_id=110512


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