Marathon PGM acquired by Stillwater Mining

A Montana base metal miner is acquiring a future PGM-copper mine on the north shore of Lake Superior. 

Stillwater Mining has entered into an agreement to acquire all outstanding shares of Marathon PGM in a 50-50 split of cash and Stillwater shares.

The deal is valued at US$118 million or Cdn$3.55 per Marathon PGM share.

The transaction has been unanimously approved by the boards of directors of both companies and is expected to be completed by late November.

The property, located just north of the town of Marathon in northwestern Ontario, is expected to produce 200,000 ounces annually of platinum and palladium for up to 12 years, with more potential to the west at the nearby Geordie Lake Project.

Stillwater also picks up the Bird River PGM property in Manitoba.

Marathon PGM plans to spin out its gold assets with company president and CEO Phillip Walford shifting over to head up that new venture to be known as Marathon Gold.

In a Sept. 7 release, Stillwater chairman and CEO Frank McAllister said the acquisition offers “significant value and upside potential” to Stillwater shareholders as thos PGM-copper project in one of the few near-term development properties in North America.

Marathon PGM president and CEO Phillip Walford said the transaction allows Marathon Gold to use their skills to find ore reserves and generate shareholder value by advancing exploration properties, particularly their Valentine Lake gold prospect in Newfoundland.