Platinum group metal (PGM) producer Stillwater Mining has purchased Ontario-based Marathon PGM Corp. in a deal reported to be worth $140 million to $160 million.
After 99.98 per cent of Marathon shareholders voted in favour of the deal, the Ontario Superior Court of Justice approved the sale, which then received ministerial approval under the Investment Canada Act.
The agreement calls for each common share of Marathon PGM to be exchanged for 0.112 common shares of Stillwater, $1.775 Cdn. in cash, and 0.5 common shares of Marathon Gold Corp., which started trading on the Toronto Stock Exchange on Dec. 3. Marathon PGM was delisted the day before.
“The Marathon PGM/Copper Project will ensure Stillwater remains North America’s leading PGM producer,” said Stillwater board chair and chief executive officer (CEO) Frank McAllister. “Further, we have long recognized geographical and commodity diversification as important to our growth. The project’s location in northwest Ontario and its copper resources fit nicely into this strategy.”
Marathon PGM president and CEO Phillip Walford called the deal the company’s “biggest milestone.”
“Marathon’s team has worked diligently over the years and it has benefited all of our employees and shareholders,” Walford said. “Every person involved with the project directly contributed to its success…We are ready to get to work replicating our success.”
