South Africa’s Sibanye-Stillwater (JSE:SGL) (NYSE:SBGL) has decided to sell its majority stake in a platinum group metals-copper project in Canada to mineral exploration and development company Generation Mining.
Under the terms of the agreement, the local junior will earn a 51% in the Marathon project, in northern Ontario, by advancing the development of the asset through further economic studies.
Gen Mining can earn an additional 29% interest within four years by investing at least C$10m and delivering a PEA.
Sibanye-Stillwater will receive C$3
million (about $2.3m) in upfront proceeds and 11 million shares at 0.2714
Canadian dollars per share in Gen Mining, equivalent to a 12.9% equity stake.
In exchange, Gen will not only
secure a majority stake in the Marathon, but also form a joint venture with
Sibanye-Stillwater Canada and be the operator of it.
Additionally, the Canadian junior will
have the right to earn an additional 29% interest within four years by investing
at least C$10 million and delivering a preliminary economic assessment.
The companies first announced a
potential transaction in April, when Gen Mining signed a letter to earn into
the property, adjacent to Lake Superior, and which comprises 44 mining
leases and 82 contiguous claims.
The deal is expected to be
completed by mid-July.