JSE/NYSE-listed Sibanye-Stillwater has entered a strategic acquisition agreement with Generation Mining to further its Marathon project.
The PGM-copper Marathon project is situated in northern Ontario, Canada, adjacent to Lake Superior.
The Marathon project was acquired by Sibanye-Stillwater as part of the Stillwater acquisition in May 2017.
Sibanye-Stillwater CEO, Neal Froneman comments:
“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, whilst we maintain our attention on our core US PGM operations.
“We look forward to working with Generation Mining to realize the potential of the property, increasing the value proposition for all stakeholders.”
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 @ CAD$0.2714 per share in Generation Mining on closing of the agreement.
Generation Mining will acquire a 51% interest in the Marathon project and form an unincorporated joint venture with Stillwater Canada Inc.
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.
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.
Generation Mining is a base metal exploration and development company with various property interests throughout Canada.
Its primary business objective is to explore and further develop these properties, and to continue to increase its portfolio of base and precious metal property assets through acquisition.
The company’s common shares trade on the Canadian Securities Exchange under the symbol GENM.