London Mining Plc GRANT OF SHARE INCENTIVE AWARDS (1325D)

TIDMLOND

RNS Number : 1325D

London Mining Plc

24 April 2013

London Mining Plc

Quoted on London AIM (LOND LN)

("London Mining" or the "Company")

24 April 2013

GRANT OF SHARE INCENTIVE AWARDS

24 April 2013. London Mining, the UK based developer of mines for the global steel industry, announces that, further to a review of remuneration and in keeping with its remuneration policy, on 23 April 2013 made grants of share options and long term incentive awards throughout the Group's management levels, including to executive directors.

As detailed in the Company's 2012 Annual Report, in order to align remuneration with shareholder expectations and reflect current market conditions in the industry, the executive directors and the chief operating officer have elected to waive all year-end cash bonuses and to take any bonus payable for 2012 entirely in the form of ordinary shares, with 50% of such award being deferred until a share price of 255p is achieved. This share price target is to be satisfied within 18 months of the award or it will otherwise be forfeited.

Options over a total of 1,747,000 Ordinary Shares each with an exercise price of 105.5p per share (the "Options") under the terms of the London Mining Plc Number 1 Share Option Scheme (the "No.1 Scheme") and the London Mining Plc Approved Company Share Option Plan, nil-cost option awards over 2,732,362 Ordinary Shares ("LTIP Awards") under the terms of the London Mining Long Term Incentive Plan (the "LTIP") and nil-cost option awards over 1,160,512 Ordinary Shares in respect of deferred bonus awards (the "Deferred Awards") under the terms of the London Mining Plc Deferred Bonus Plan (the "Deferred Plan") have been granted.

As part of these grants, London Mining has made LTIP Awards to directors in accordance with its stated remuneration policy, as follows:

Graeme Hossie (Chief Executive Officer) received an LTIP Award over 890,995 Ordinary Shares, and a Deferred Award over 311,848 Ordinary Shares in lieu of his annual bonus relating to the Company's financial year ended 31 December 2012.

Rachel Rhodes (Chief Financial Officer) received an LTIP Award over 403,454 Ordinary Shares, and a Deferred Award over 188,278 Ordinary Shares in lieu of her annual bonus relating to the Company's financial year ended 31 December 2012.

Benjamin Lee (Corporate Development Director) received an LTIP Award over 360,426 Ordinary Shares, and a Deferred Award over 168,199 Ordinary Shares in lieu of his annual bonus relating to the Company's financial year ended 31 December 2012.

LTIP Awards and Deferred Awards are to be satisfied by the Company's employee benefit trust purchasing shares in the market to meet vesting forecasts from time to time.

LTIP Awards may be exercised between the third and tenth anniversaries of their respective dates of grant. The vesting of the LTIP Awards is subject to continued employment with the Company and the satisfaction of rigorous performance conditions including the satisfaction of relative total shareholder return, production and cost targets as detailed in the 2012 Annual Report. Where the Company substantially achieves outperformance against these conditions, the number of Ordinary Shares under the LTIP Awards Awards may be adjusted in line with the remuneration policy set out in the Company's 2012 annual report.

Fifty per cent. of the Deferred Awards granted to the directors vest and may be exercised from the date of grant (subject to continued employment with the Company) with the remaining Deferred Awards becoming exercisable only when the Company's share price reaches 255p per share and the volume weighted average price per share remains above that price for 30 days. This target must be achieved within 18 months of the award of the deferred shares. Failure to meet the target will result in the award being forfeited.

The LTIP Awards and Deferred Awards are subject to the approval of the trustee of the London Mining Plc Long Term Incentive Trust.

Amendment of options

The Company notes that certain options granted by the Company in July 2007 and May 2008 (with exercise prices ranging from 174p to 344p) were granted with an option period of less than 10 years. All other options and awards granted by the Company subsist over a ten year option period. In order to ensure consistency and standardise terms with respect to all share awards, the Company proposes that the term of options (the details of which have been disclosed previously) granted in July 2007 to Hank Schønwandt, Colin Knight, Malcolm Groat and Venture Development Partners (a company in which Graeme Hossie has an interest) and in May 2008 to Luciano Ramos, is extended to ten years, such that they will lapse in 2017 and 2018 (as appropriate) to the extent that they are not otherwise exercised.

These options have been granted under the terms of either the London Mining Plc No.1 Share Option Scheme or the London Mining Plc No. 2 Share Option Scheme.

The Company's accountants have confirmed that the cost of the existing options have already been accounted for and amending them to extend their life to 10 years will not lead to any additional accounting charges arising on the amendments becoming effective.

For more information, please contact:

 
 London Mining Plc 
  Graeme Hossie, Chief Executive Officer 
  Rachel Rhodes, Chief Financial Officer 
  Thomas Credland, Head of Investor Relations    +44 (0)20 7408 7500 
 Liberum Capital (Nominated Advisor/Broker) 
  Christopher Kololian/Tom Fyson                 +44 (0)20 3100 2000 
 J.P. Morgan Cazenove (Broker) 
  Ignacio Borrell/Ben Davies                     +44 (0)20 7742 4000 
 Brunswick Group LLP 
  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 bankable feasibility study was completed in 2012 on an expansion plan to 9Mtpa and a prefeasibility study was completed in 2011 which shows that Marampa has resources to support a staged expansion to over 16Mtpa. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mtpa of iron ore production by developing mines in Greenland and Saudi Arabia. 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.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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