Lonmin shareholders back fundraising

Shareholders in platinum miner Lonmin have voted in favour of a 817m-dollar rights issue to repair its balance sheet.

Investors representing 77.7% of the issued share capital voted, with 91.1% in favour and 8.9% against.

After much uncertainty its largest shareholder Xstrata, which holds a 24.63% stake, announced on November 15th that it would back the fundraising.

The nine-for-five rights issue of up to 365.5m shares at a UK issue price of 140p per new share will raise about $777m net.

The proceeds from the rights issue will be used to permanently reduce the company's available US dollar-denominated borrowing facilities from $700m to $400m and partially pay down outstanding amounts on its remaining facilities.