Sep. 7, 2010 (Canada NewsWire Group) --
Stillwater To Acquire Marathon PGM's Platinum Group Assets; Marathon PGM To Spin Out Gold Assets
Acquisition of Complementary Assets Solidifies Stillwater's Position As Leading North American PGM Mining Company; Anticipated To Increase Stillwater's Platinum and Palladium Production By Approximately 40% Within Three Years
Transaction Expected To Be Immediately Accretive To Stillwater On A Net Asset Value Per Share And Reserve Per Share Basis; Expected To Be Highly Accretive To Stillwater Cash Flow Within Three Years
TORONTO, ON and BILLINGS, MT, Sept. 7 /CNW/ - Marathon PGM Corp (TSX : MAR) ("Marathon PGM") and Stillwater Mining Company (NYSE: SWC) ("Stillwater") today announced that they have entered into a definitive agreement (the "Agreement") pursuant to which Stillwater, by way of a plan of arrangement, will acquire all of the outstanding shares of Marathon PGM. The deal to buy Marathon PGM is a 50:50 split of cash and Stillwater shares, based on Stillwater's closing share price at September 3, 2010. According to the terms of the transaction, Stillwater will exchange 0.112 common shares of its stock and Cd$1.775 in cash for each outstanding share of Marathon PGM. Under the provisions of the Agreement, Marathon PGM will also distribute shares of its subsidiary, Marathon Gold Corporation ("Marathon Gold"), to Marathon PGM shareholders before the exchange with Stillwater. Marathon PGM's platinum group metal ("PGM") assets include the Marathon PGM/Copper Project. Total consideration payable by Stillwater for the transaction is valued at approximately US$118 million or Cd$3.55 per Marathon PGM share, which does not take into account the value of the Marathon Gold shares...
Cash, Stillwater stock plus spinoff Co. stock.
Earlier post
4 comments:
It was just matter of time when takeover happens. Nice premium. I own some MAR.
"Bowood Announces Alberta Bakken Lease Acquisition, and Joint Venture With Blood Tribe First Nation and Equity Financing" Spicer what you think about all this? Buy or not?
There is a lot of risk here(not much of current cashflow or reserves), but the potential reward seems to be substantial. If would I buy it I'd take a very small position at this point.
A well operated by a land leasing company(the real operator probably wants to remain anonymous at this point) was spudded in early August near the border and some of the results of the well should be ready by now.
Not a price bad price for MAR. If you take into account the spinco stock the offer is $3.50-4.00 per share.
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