LONR Lonrho

    RNS Number : 9807F
  Lonrho PLC
  16 October 2008
   

    16 October 2008

    LONRHO PLC
    ('Lonrho' or the 'Company')

    LONRHO MINING PLACEMENT OF SHARES AND OPTIONS TO RAISE $3.07 MILLION, APPOINTMENT OF DIRECTOR, ISSUE OF OPTIONS

    Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to note that Lonrho Mining Limited
(formerly known as Nare Diamonds), which is owned 24.16% by Lonrho, has made the following announcement to the Australian Securities
Exchange this morning:

    Placement of shares and application for options

    Lonrho Mining Limited (ASX: LOM) ("Lonrho Mining" or the "Company") is pleased to announce that it has completed the placement of
48,189,991 ordinary shares in the Company (the Placement) to professional and sophisticated clients of Indian Ocean Capital and Argonaut
Securities to raise $2.89 million (before issue costs).

    Applications have been received for 48,189,991 options over ordinary shares exercisable at $0.15 expiring 30 June 2012 for consideration
of $0.00375 per option (to raise a further $0.18 million), and a further 48,189,991 options over ordinary shares exercisable at $0.15
expiring 30 June 2012 for nil consideration. The issue of these options is subject to shareholder approval.

    Lonrho Plc has participated in the Placement and applied for options to the extent of $0.9 million, representing 14,166,666 shares,
14,166,666 options for $0.00375 each and 14,166,666 options for nil consideration.

    The Placement has been made pursuant to the Company's existing capacity under ASX Listing Rule 7.1, following approval by shareholders
of the Company in General Meeting on 30 July 2008 (Resolution 3). The Company's Appendix 3B has been lodged with this announcement. 

    The Company gives notice under section 708A of the Corporations Act as follows: 

     1. The shares referred to above were issued without disclosure to investors under part D.2  of the Corporations Act; 
     2. The Company, as at the date of this notice has complied with: - the provisions of Chapter 2M of the Corporations Act, section 674 of
the Corporations Act; and 
     3. There is no excluded information for the purposes of sections 708(7) and (8) of the Corporations Act as at the date of this notice.

    The Company intends to use the funds raised towards:

     1. Exploration and development of the Lulo project in Angola;
     2. Continuing to fund the Schmidtsdrift operation until completion of the sale; and
     3. General working capital purposes.

    Appointment of Matthew Fitzgerald as director

    The Company is pleased to announce the appointment of Mr Matthew Fitzgerald as a director of the Company. Mr Fitzgerald is a chartered
accountant with extensive experience in the resources industry.  He began his career in the Assurance & Advisory Division of KPMG, before
joining ASX-listed Kimberley Diamond Company NL and Blina Diamonds NL in 2003, where he held the position of Chief Financial Officer and
Director until July 2008.

    Issue of options

    The Company will issue options in the Company exercisable at $0.15 expiring 30 June 2012 for nil consideration, subject to shareholder
approval:

                                     Number of options
 Mr Miles Kennedy (Director)                 5,000,000
 Mr John Firth (Director)                    5,000,000
 Mr Matthew Fitzgerald (Director)            4,000,000
 Mr David Lenigas (Director)                 5,000,000
 Mr Geoffrey White (Director)                5,000,000
 Ms Jean Mathie (Company Secretary)            750,000
 Indian Ocean Capital (Broker)              10,000,000
 Argonaut Securities (Broker)                5,250,000
                                            40,000,000

    Notice of Meeting

    The Company will in due course issue a Notice of Meeting to seek shareholder approval for the:

    *     Issue of options for which applications have been received; and
    *     Issue of options to directors, the company secretary and brokers to the Placement.



    MILES KENNEDY
    DIRECTOR


    LONRHO ENQUIRIES
 Lonrho Plc                                +44 (0)20 7016 5105
 David Lenigas, Executive Chairman         +44 (0)7881 825 378
 Geoffrey White, Chief Executive Officer   +44 (0)7717 307 308
 Emma de Borchgrave, Executive Director    +44 (0)7867 785 177
                                            
 Pelham PR                                  
 Charles Vivian                            +44 (0) 20 7743 6672
                                           +44 (0) 7977 297903
 James MacFarlane                          +44 (0) 20 7743 6375
                                           +44 (0) 7841 672831
                                            
 Collins Stewart Europe : NOMAD to Lonrho   
 Hugh Field / Ned Fox                      +44 (0) 20 7523 8350


    NOTES TO EDITORS

    About Lulo

    The Lulo Project is located on the eastern margin of the Cuango River catchment approximately 650km east of Luanda within the Lunda
Norte Province of northeastern Angola.  

    The Company has signed Joint Venture Agreements with Endiama, the national diamond company of Angola and exclusive concessionary for
Angolan diamond mining rights, to develop the highly prospective 3,000km� Lulo Diamond Concession in Angola. 

    On all kimberlite deposits Lonrho's participating interest will initially be 39% of the joint venture which will decrease to 30% after
recoupment of its investment in the Project. On all alluvial deposits Lonrho's participating interest will be 40% in the joint venture.
Under the terms of the joint venture agreement with Endiama, Lonrho has paid a cash deposit of US$1.4 million (A$1.54 million) which is
refundable after exploration expenditure of an equal amount by Lonrho within nine months after signing the joint venture agreement. Lonrho
is also required to fund a work programme for which the first year of exploration expenditure will total US$6 million (A$7 million). Under
the terms of the joint venture, the Company will also receive in priority the funds it has expended on exploration from future cash flow
from mining operations.

    For more information please visit: www.lonrhomining.com 


    About LONRHO:

    Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company's shares are traded
on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure,
transportation, support services, hotels and natural resources. The Company has over 19,000 shareholders and substantial institutional
backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy. 

    Since 2006, the Company has invested in or acquired control of: 

    Hotel Cardoso - www.hotelcardoso.co.mz  (retained)
    Lonrho Mining - www.lonrhomining.com 
    Luba Freeport - www.lubafreeport.com 
    Fly540 - www.fly540.com 
    Swissta Holdings - www.swissta.com 
    SA Independent Liner Services - www.saliners.com 
    Bytes and Pieces www.bytespieces.com 
    Kwikbuild - www.e-kwikbuild.co.za 
    LonZim - www.lonzim.co.uk 



This information is provided by RNS
The company news service from the London Stock Exchange
 
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