starts
"LONMIN’s ancestral landlords, the Bapo ba Mogale traditional community, on Tuesday voted on the company’s offer to swap royalties for an equity stake estimated at more than R1bn, excluding dividends. The community held a meeting in a community hall near Brits to decide whether to accept the offer. Voting started just before 4pm and results were expected late on Tuesday night. Before the meeting concluded — with tougher questions coming thick and fast — some people were signing the traditional council’s draft resolution in support of the transaction. The Bapo ba Mogale traditional council told the meeting that it was not in a position to confirm the percentage of the community’s proposed stake, only saying that it was "more than 2%".cont
one part states
" Mining companies across SA are undergoing an audit of their compliance with the Mining Charter, which lays out ownership, labour and social obligations and targets to secure mining rights. Lonmin said the deal entails the community swapping a royalty payment for 13.13-million shares in Lonmin, and an annual R20m payment over five years. Lonmin shareholders have to approve the transaction. Together with an employee share ownership scheme and a community share ownership trust Lonmin is putting in place, the company will reach the 26% target by year-end."continues
NKP Price at posting:
6.1¢ Sentiment: None Disclosure: Held
