London Mining Plc OFFTAKE CONTRACT DISPUTE AND FINANCING UPDATE (2192S)

TIDMLOND

RNS Number : 2192S

London Mining Plc

22 September 2014

London Mining Plc

Quoted on London AIM (LOND)

("London Mining" or the "Company")

22 SEPTEMBER 2014

Offtake contract dispute and financing update

London Mining announces that it is in dispute with Glencore regarding a cash prepayment amount which the Company has requested and which Glencore has refused to pay. The Company is currently considering the options which may be available to it under its offtake agreement with Glencore including termination of the agreement. London Mining is in discussions with its core lender to provide the required short term replacement liquidity. Separately, London Mining has signed a termsheet with Afreximbank for a USD30m revolving 2 year pre-export financing facility on terms which are similar to those for London Mining's original corporate facilities. The facility has received credit approval from Afreximbank but is subject to credit approval by the Company's existing lenders. All these discussions are ongoing, although there is no certainty at this time that arrangements can be put in place for such replacement financing. The Company's lenders remain supportive.

London Mining continues to receive strong interest in its offtake including prepayment financing and has received expressions of interest from a number of parties to reallocate uncommitted offtake and provide further funding for the Company in the event that the position with Glencore cannot be resolved. In the meantime discussions with potential strategic partners are continuing and are being accelerated.

A further announcement will be made as appropriate

For more information please contact:

 
 London Mining Plc 
  Graeme Hossie, Chief Executive Officer 
  Benjamin Lee, Chief Financial Officer 
  Thomas Credland, Head of Investor Relations    +44 (0)20 7408 7500 
 
   Liberum Capital (Nominated Adviser/Broker) 
   Richard Crawley / Tom Fyson                     +44 (0)20 3100 2000 
 J.P. Morgan Cazenove (Broker) 
  Ben Davies / Ignacio Borrell                   +44 (0)20 7742 4000 
 Buchanan 
  Bobby Morse / Louise Mason                     +44 (0)20 7466 5000

About London Mining

London Mining is an expanding producer of high specification iron ore concentrate for the global steel industry and is focused on identifying, developing and operating sustainable mines. The Company is on track to produce c. 5Mwmt in 2014, from its 100% owned Marampa Mine in Sierra Leone, increasing to 6.5Mwmt/a following the next phase of expansion. Marampa has resources of c.1Bnt to support a mine life of over 40 years and a staged expansion to 20Mwmt/a of iron ore production. London Mining has also completed bankable feasibility studies outlining plans for the development of its projects in Greenland and Saudi Arabia, with an aggregate JORC attributable resource of 1,203Mt. The Company listed on AIM on 6 November 2009 and trades under the symbol LOND. 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

END

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