Ashurst and Herbert Smith bag Lonmin work

Herbert Smith and Ashurst have won places on the $457m (£303m) cash call made by platinum miner Lonmin.

Herbert Smith corporate partners Greg Mulley and Adam Wells acted for Lonmin, which launched the rights issue after reporting a $196m pre-tax loss in the six months to the end of March.

Ashurst corporate partner Nicholas Holmes led the team advising the underwriters, JPMorgan Securities and Citi. He was assisted by US corporate partner Marie Elena Angulo on the issue.

Lonmin is dual-listed in South Africa and London and has debts of around $449m.

Mining group Xstrata, which is reported to be weighing up another bid for Lonmin, is the largest shareholder with a 25 per cent position. The group abandoned a hostile bid in ­October last year but has agreed to take up 36 per cent of the rights issue.

Xstrata is being advised by Freshfields Bruckhaus Deringer, which acted on its £4.1bn rights issue earlier this year.

Ashurst also advised the underwriters on the £125m rights issue by mining ­company Aquarius Platinum. Holmes acted for Merrill Lynch on the fundraising last month, alongside company advisers Linklaters.

He said capital markets activity was increasing, adding: “The immediate pipeline is looking very strong.”