Sibanye-Stillwater to sell 51% stake in Canadian PGM-copper project

Generation Mining

26/06/2019 11:08

JOHANNESBURG, June 26 (Reuters) - South Africa's
Sibanye-Stillwater  SGLJ.J  is to sell a 51% stake in its
PGM-copper project in northern Ontario to Generation Mining Ltd
 GENM.CD  in a deal to further develop the asset, the previous
miner said on Wednesdaay.
    Sibanye-Stillwater will receive 3.0 million Canadian dollars
($2.28 million) in upfront proceeds and 11 million shares at
0.2714 Canadian dollars per share in Generation Mining, equating
to a 12.9% equity stake. In exchange, the Canadian miner will
have a 51% stake in the project adjacent to Lake Superior and
form a joint venture with Sibanye-Stillwater Canada.
    Generation Mining, an exploration-focused company, will
advance the project, which Sibanye acquired in May 2017, and
will conclude further studies on its development,
Sibanye-Stillwater said.
    "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," Sibanye-Stillwater 
Chief Executive Officer Neal Froneman said in the statement.
    Sibanye expects the deal to be completed by mid-July. 
    Generation Mining, which will be the operator of the joint
venture, will also have the right to earn an additional 29%
interest within four years, by making total cash expenditures of
at least 10 million Canadian dollars and delivering a
preliminary economic assessment.
    
    ($1 = 1.3160 Canadian dollars)

 (Reporting by Tanisha Heiberg; editing by Emelia
Sithole-Matarise)
 ((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters
Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net))