Lonmin gets green light for rights issue

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The Independent Online

Lonmin, the struggling South African platinum miner, has gained clearance to proceed with a crucial $817m (£513m) rights issue after shareholders voted in favour of the offering.

The London-listed group, whose flagship Marikana mine was rocked by strikes over the summer which resulted in dozens of deaths, said more than 91 per cent of the votes cast were in favour. Lonmin secured shareholder backing a week after issuing an impassioned plea for their support.

"The board believes that failure to proceed with the rights issue would leave the company in a highly vulnerable position in its discussions with its banking group," a Lonmin spokesman said at the time.