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Mitsubishi Corporation Enters into Agreement for Development of Marathon PGM Project in Canada
Mitsubishi Corporation (JCN Newswire)
2012-03-29 Tokyo, Mar 29, 2012 - ( JCN Newswire ) - Mitsubishi Corporation (MC) today announced that it has entered into an agreement with Stillwater Mining Company (Stillwater) to acquire shares of Stillwater Canada Inc. (SCI), which holds a 100% interest in Stillwater's Marathon PGM Project (Project). MC will pay US$94.9million, which consists of US$81.25 million to acquire a 25% interest in SCI and US$13.6 million to meet the venture's first cash call.
The PGM deposit to be developed is located about 10 kilometers north of the town of Marathon, Ontario, near the north shore of Lake Superior. Stillwater acquired the property, which is an advanced-stage PGM/copper development project, in November 2010. The town of Marathon is situated on the Trans-Canada Highway about 300 kilometers east of the city of Thunder Bay.
The project would include development of an open-pit mine and milling operation with one primary pit and several smaller satellites pits. Initial projections suggest the mine would produce about 200,000 ounces of PGMs (mostly palladium) and 17 thousand tonnes of copper per year over a mine life of about 11.5 years, with first production of PGMs and copper projected to begin around 2016. Under the agreement, MC will own 25% of SCI, which owns 100% of the Project. MC will also have an option to purchase up to 100% of the PGM production from the Project. Adjacent to the Project, SCI has two promising exploration properties, Bermuda and Geordie Lake, which will be continuously prospected. PGM is a precious metal used in a wide variety of industrial applications to support environmental needs. They include applications such as automobile catalysts to clean exhaust gas, catalysts for petroleum refining, electronic devices, and fuel cells.
MC has designated the expansion of high quality resource investments and sustainable growth as key components of its business development strategy. Through this acquisition, MC aims to expand its resource portfolio and strengthen its prospects for long-term sustainability.
AboutMitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
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