JOHANNESBURG (miningweekly.com) – World number-three platinum-miner Lonmin said on Thursday that 96,38% of its shareholders had accepted its $457-million rights issue.

Lonmin received acceptances in respect of about 33,8-million shares, it said in a statement, adding that Citigroup Global Markets UK Equity and JP Morgan Cazenove would to procure subscribers for the balance of 1,27-million new shares not validly taken up under the issue.

Lonmin CEO Ian Farmer said in May, when the company announced the rights issue, that it would use the $457-million to reduce borrowings under its existing credit facilities.

The rights issue is designed to give the company a more conservative capital structure by improving its ability to withstand potentially adverse movements in prices and rand-dollar exchange rates.

It reduces borrowings and interest charges and provides headroom to accommodate financial covenants in the company’s credit facility.

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