Vancouver-based Peregrine Metals Ltd. (TSX: PGM) has entered into an agreement whereby Montana’s Stillwater Mining Co. (NYSE: SWC) will acquire its assets for more than US$480 million.
The American palladium and platinum producer sought out the acquisition to increase its copper and gold deposit interests, indicating that the deal has the potential to develop Stillwater into one of the leading copper producers in the Americas.
Stillwater plans to develop and operate Peregrine's Altar copper-gold deposit in the San Juan province of Argentina.
Frank McAllister, Stillwater's chairman and CEO, said, “For several years, one of Stillwater’s primary strategic goals has been to grow and diversify our business through the acquisition and development of high-quality mining assets.
The Peregrine transaction provides us with broader diversification into copper – a metal with favourable long-term fundamentals driven by growing market demand – as well as meaningful exposure to gold.”
Eric Friedland, Peregrine's chairman and CEO, said, “Stillwater not only has the balance sheet strength, financing capabilities and cash flow required to advance Altar's development, but the proven operational track record and extensive management experience in the copper industry needed to do so in a thoughtful and diligent manner.”
The deal is expected to close by September 30.
Jennifer Harrison
Twitter: JHarrisonBIV