Gen Mining and Sibanye ink definitive Marathon agreement
Exploration and development company Generation Mining (Gen Mining) has entered into a definitive agreement with gold and platinum miner Sibanye-Stillwater to earn a majority stake in the Marathon project, in northern Ontario, Canada.
South Africa-headquartered Sibanye CEO Neal Froneman said on Wednesday that handing over control of the Marathon project to a focused exploration company would ensure appropriate investment for the asset.
In terms of the agreement Gen Mining would acquire a 51% interest in the Marathon project and advance the asset through further economic studies.
The companies first announced a potential transaction in April, when Gen Mining signed a letter of intent with Sibanye to earn into the property, which comprises 44 mining leases and 82 contiguous claims.
At the time, Gen Mining CEO Jamie Levy said that Marathon was “one of the few large undeveloped palladium deposits in North America”.
The property was developed from 1985 to 2010 by various companies and was eventually owned by Marathon PGM Corporation, which Stillwater Mining acquired for $118-million in 2010. In 2017, the property fell into the hands of Sibanye when it bought Stillwater for $2.2-billion.
In terms of the definitive acquisition agreement, Sibanye would receive upfront proceeds in the form of C$3-million in cash and 11 053 795 shares at C$$0.2714 a share in CSE-listed Gen Mining, which would give the company an equity interest of 12.9% upon closing in July.
Froneman commented that the transaction would unlock value for Sibanye-Stillwater and allow it to maintain its attention on its core US platinum group metals operations.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation