London, England — 20 August 2012 – Top platinum miner Lonmin is considering a US$1 billion rights issue starting as early as next month to recoup losses following the closure of its Marikana mine in South Africa where 44 people have been killed in the past week.
Reporting this here, Reuters quotes “The Sunday Times” as saying Lonmin shareholder Xstrata has signalled that it is willing to cover its part of the fundraising, according to sources close to the situation.
Lonmin was likely to ask for leniency in loan repayments from its bank and to reduce its spending to deal with spiralling debt before the end of its financial year next month, the paper added.
The London-listed company was forced to stop operations at its biggest mine this week after South African police had opened fire on striking miners brandishing machetes and sticks on Friday. It was Africa’s bloodiest security operation since the end of apartheid.
Source: Reuters Africa. For more information, click here.