TIDMLOND

RNS Number : 4744M

London Mining Plc

18 September 2012

London Mining Plc

Quoted on London AIM (LOND LN)

("London Mining" or the "Company")

CANCELLATION OF OPTIONS AND ISSUE OF NEW SHARES

18 September 2012

In the past, in keeping with the entrepreneurial nature of the Company, the Board was keen to ensure that Directors' interests were aligned with the interests of shareholders and therefore the Board granted share options to certain Non-Executive Directors. Accordingly, on 7 June 2010, the Company granted Sir Nicholas Bonsor 125,000 share options on his elevation to Deputy Chairman of the Company and Graham Mascall 75,000 share options (the "Share Options") in connection with his appointment to the board of the Company. The Share Options were granted under the London Mining Plc No.2 Share Option Plan.

Whilst the Board continues to believe that Sir Nicholas Bonsor and Graham Mascall are independent, as explained in the Company's most recent annual report, it is aware that the granting of share options to Non-Executive Directors is not consistent with the UK Corporate Governance Code and therefore it does not intend to grant any further share options to Non-Executive Directors.

To address shareholder concerns with respect to the existing Share Options held by Sir Nicholas Bonsor and Graham Mascall, the Board has worked with shareholders to establish a way to equitably dispense with the Share Options to enable shareholders to be more comfortable with their independence. An independent consultant was appointed to carry out the valuation of the options. Accordingly, the Board has agreed with each of Sir Nicholas Bonsor and Graham Mascall that their respective Share Options shall be cancelled in consideration for the payment of a cash sum of GBP215,550.75 and GBP129,330.45 respectively. Sir Nicholas Bonsor and Graham Mascall have agreed to use the net proceeds of their respective cash payments to subscribe for 50,905 and 30,543 new shares in the capital of the Company at a price of GBP1.825 per share and the Company has agreed to issue such shares.

As a result of the transaction, Sir Nicholas Bonsor will hold 102,905 ordinary shares and no options over shares in London Mining and Graham Mascall will hold 30,543 ordinary shares and no options over shares in London Mining. Save with the consent of the Company, Sir Nicholas Bonsor and Graham Mascall have agreed not to sell any of the shares that they are acquiring until 7 December 2013 (in the case of Sir Nicholas Bonsor) and 1 November 2013 (in the case of Graham Mascall).

London Mining will apply for the admission of the new shares to trading on AIM. Admission is expected to become effective on 24 September 2012.

 
  For more information, please contact: 
   London Mining Plc 
   Thomas Credland, Head of Investor 
   Relations                                     +44(0)20 7408 7500 
 Liberum Capital (Nominated Advisor/Broker) 
  Clayton Bush / Christopher Kololian          +44(0)20 3100 2000 
 Brunswick Group 
  Carole Cable / Rosheeka Field                +44 (0)20 7404 5959

About London Mining

London Mining is an expanding producer of high specification iron ore for the global steel industry and is focused on identifying, developing and operating sustainable mines. London Mining commenced sales from the Marampa mine in Sierra Leone in 2012 and expects to reach production capacity of 5Mtpa in 2013. A prefeasibility study was completed in 2011 which shows that Marampa has resources to support a staged expansion of over 16Mtpa. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mtpa of iron ore production by developing two other mines in Greenland and Saudi Arabia. London Mining is also producing from a coke operation with coking coal resource potential in Colombia. The Company listed on AIM in London on 6 November 2009. It trades under the symbols LOND.L (Reuters) and LOND LN (Bloomberg). More information about London Mining can be found at www.londonmining.co.uk.

This information is provided by RNS

The company news service from the London Stock Exchange

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