Sibanye-Stillwater has entered an acquisition agreement with Generation Mining for the development of the PGM-copper Marathon project situated in northern Ontario, Canada.
The Marathon project was acquired by Sibanye-Stillwater as part of the Stillwater acquisition in May 2017.
The agreement sees Sibanye-Stillwater receive upfront proceeds in the form of 3.0-million Canadian dollars (CAD) in cash and 11 053 795 shares at CAD0.2714 per share in Gen Mining (an equity interest of 12.9% at CAD0.2714 per share) on closing of the agreement. Gen Mining will acquire a 51% interest in the Marathon project and form an unincorporated joint venture with Stillwater Canada.
The agreement will enable Generation Mining, a focused exploration company, to advance the Marathon project and to conclude further economic studies in the development of this asset. “We are pleased to enter into this agreement which unlocks immediate value for the Group and ensures appropriate investment and focus on the Marathon project, while we maintain our attention on our core US PGM operations,” comments Neal Foneman, Sibanye-Stillwater CEO.
The conclusion of the transaction is subject to customary conditions for a transaction of this nature and is expected to close prior to mid July 2019. “We look forward to working with Generation Mining to realise the potential of the property, increasing the value proposition for all stakeholders,” concludes Foneman.