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Proposed acquisition of Lonmin

The Boards of Sibanye-Stillwater and Lonmin are pleased to announce that they have reached agreement on the terms of a recommended all-share offer pursuant to which Sibanye-Stillwater and/or a wholly-owned subsidiary of Sibanye-Stillwater, will acquire the entire issued and to be issued ordinary share capital of Lonmin (the “Offer”). It is proposed that the Offer will be effected by means of a scheme of arrangement between Lonmin and the Lonmin Shareholders under Part 26 of the UK Companies Act. Under the terms of the Offer, each Lonmin Shareholder will be entitled to receive: 0.967 New Sibanye-Stillwater Shares For each Lonmin Share.

“The proposed combination with Lonmin positions the enlarged Sibanye-Stillwater Group as a leading mine-to-market producer of PGMs in South Africa. The realisation of significant synergies between the operations, which will deliver longer term benefits for all stakeholders of both companies is expected to result in this being a value accretive transaction for Sibanye-Stillwater shareholders. The flexibility inherent in the larger regional PGM footprint, will create a more robust business, better able to withstand volatile PGM prices and exchange rates. Furthermore, the sizeable combined resource base, with its pipeline of advanced and early stage projects, also offers significant growth and value upside potential under appropriate economic and market circumstances.”
Neal Froneman, CEO of Sibanye-Stillwater

Compelling transaction rationale

The Board of Sibanye-Stillwater believes that the Acquisition is compelling and value accretive for Sibanye-Stillwater Shareholders and is a logical step in executing its PGM strategy. By combining Sibanye-Stillwater’s existing, and contiguous, South African PGM assets with Lonmin's operations, including Lonmin's processing facilities, Sibanye-Stillwater will be able to unlock operational synergies and become a fully integrated PGM metals producer in South Africa.

In particular, Sibanye-Stillwater has identified the following principal benefits to the Sibanye-Stillwater Group from the Acquisition:

  • consistency with Sibanye-Stillwater’s strategy;
  • access to Lonmin’s own processing facilities in South Africa;
  • realisation of significant synergies between Sibanye-Stillwater and Lonmin's contiguous assets; and
  • potential upside from developmental projects.

About Lonmin

The LonminGroup’s revenue-generating operations are located in the Bushveld Igneous Complex in South Africa. The Lonmin Group’s core mining operations, comprising 11 shafts and inclines in total, are located at Marikana, on the western limb of the Bushveld Igneous Complex in the North West Province.

The Lonmin Group has total assets of US$2,018 million (as at 30 September 2016) and resources of 180.6 million troy ounces (3PGE + Au) and 31.7 million troy ounces (3PGE + Au) of reserves (as at 30 September 2016).

Further information is available on the Lonmin website, www.lonmin.com

CONTACTS

For more information, contact:

Sibanye-Stillwater

James Wellsted
Tel: +27(0)83 453 4014
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Lonmin

Tanya Chikanza
Tel: +27(0)83 391 2859
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