Stillwater Mining Company has completed its acquisition of Marathon PGM Corporation, it was confirmed on Tuesday (30th November).

The firm's shareholders voted overwhelmingly in favour of the deal earlier this year and it has now received official court and regulatory approvals.

Stillwater will pay 0.112 of its common shares, C$1.775 in cash and 0.5 common shares of a new organisation, Marathon Gold Corporation, for each common share of Marathon PGM.

Marathon PGM's main asset is its self-titled project in north-west Ontario, Canada, having completed a definitive feasibility study on the site in November 2009.

Francis McAllister, Chief Executive of Stillwater, explained that the project will help cement Stillwater's position as the leading pgm producer in North America.

He said: "With the transaction complete we look forward to working with the communities in and around Marathon, Ontario and with governmental authorities in moving the project forward through environmental permitting to subsequent engineering and project development."

Marathon Gold Corporation will commence trading on the Toronto Stock Exchange on 3rd December.

Meanwhile, Norilsk Nickel, the world's largest palladium producer and the biggest shareholder in Stillwater, revealed this week that it intends to reduce its interest in the firm.

Norimet, a subsidiary of the Russian metals giant, will sell 37 million Stillwater shares in a secondary offering, plus 7.8 million shares to UBS Securities in mandatorily exchangeable notes, possibly in 2012.

Furthermore, over-allotment options worth 3.8 million and 1.2 million shares respectively have been approved for the two offerings.

The move will see Norilsk reduce its stake in the US-based palladium miner from 51 per cent to less than ten per cent, or even down to zero if the over-allotment options are fully taken up.

A Norilsk statement read: "The decision by Norilsk Nickel to dispose of its holdings in Stillwater represents the culmination of a strategic review undertaken by the board of directors as part of a wider review of Norilsk Nickel's international asset portfolio."

Norilsk first bought a stake in Stillwater in June 2003 for about $100 million and roughly 877,000 oz of palladium.

Sources:



Stillwater Mining Company Completes Acquisition of Marathon PGM Corporation (30/11/10)



Stillwater completes acquisition of Marathon PGM (30/11/10)



Stillwater slips on news Norilsk will sell shares (29/11/10)



Norilsk selling most of its Stillwater stake (29/11/10)

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