Lonmin, the world’s third-biggest platinum miner, put in place a $200m metal purchase deal with a Chinese company to ease the pressure on its balance sheet as it nears the completion of a takeover by Sibanye-Stillwater. Lonmin, which has been operating under the threat of having to pay back $150m for breaching its loan covenant, will immediately repay its debt and cancel all its undrawn loan facilities with South African and international banks. The $200m metal purchase agreement with Pangaea Investments Management, an associate company of Jiangxi Copper Company, will entail Lonmin and its new owner delivering platinum and palladium to the company over a three-year period. Lonmin can deliver the full amount of metal to terminate the contract early after the first year, as long as Jiangxi Copper secures a 16% return on its investment. “We are pleased to announce an improved funding arrangement as it immediately enhances Lonmin’s liquidity,” said Lonmin CEO Ben Magara, who recommitted...

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