Petaquilla News: Marathon will spin off its gold assets worth CAD6m to its Marathon Gold division
Sep 08, 2010 (MANAVIGATOR via COMTEX) –
US platinum extractor Stillwater Mining Company (NYSE: SWC | PowerRating) has signed a deal to buy Canadian peer Marathon PGM Corp (TSE: MAR | PowerRating) for CAD123m (USD118m/EUR92.3m) in cash and stock, Stillwater said in a statement yesterday. The buyer will pay per-share price of CAD1.775 and 0.112 of its own stock. As part of the agreement, Marathon will spin off its gold assets worth CAD6m to its Marathon Gold division. Moreover Stillwater said that the acquisition, approved by both companies a EUR(TM) boards, is expected to raise its platinum and palladium production with 40% over the next four years. The deal will also have a positive effect on StillwateraEUR(TM)s net asset value per share and on its cashflow within the following three years. CEO Frank McAllister said that the acquisition will boost Stillwatera EUR(TM)s position in the platinum mining industry in North America, since the Marathon PGM/Copper Project, a platinum group metal (PGM) asset acquired under the deal, is among the few development opportunities there in the near future. The transaction is pending regulatory approval and is expected to close by the end of November 2010. Financial advisor on the deal for Stillwater is Deutsche Bank (ETR:DBK). The company has appointed Fraser Milner Casgrain as legal advisor in Canada and Skadden, Arps, Slate, Meagher and Flom as legal advisor in the USA. Haywood Securities is MarathonaEUR(TM)s financial advisor. The company is legally advised by Fogler, Rubinoff in Canada and Hensley Kim Holzer and Holme Roberts Owen in the USA.
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