JOHANNESBURG, Nov 9 (Reuters) - Platinum producer Lonmin on Monday priced its $407 million rights issueat a 94 percent discount as the firm fights for survival in theface of depressed commodity prices.
Lonmin said it would sell 27 billion shares at 1.00 penceeach to its shareholders, compared to the stock's last tradingprice of 16.25 pence on the London Stock Exchange on Friday.
The company had flagged that the equity cash call would beissued at a "significant discount", underscoring a 90 percenttumble in its stock price this year.
Battered by strikes, rising costs and weak platinum prices,Lonmin said last month it planned to raise the money and another$370 million in bank loans to refinance debt due in May 2016.
Lonmin has urged shareholders to approve the equity cashcall at a meeting on Nov. 19, saying the injection was crucialto its survival.
Greenhill advised Lonmin on the rights issue. (Reporting by Olivia Kumwenda-Mtambo, editing by LouiseHeavens)