Stillwater to sell 25 percent stake in Canada project to Mitsubishi

Wed Mar 28, 2012 8:37am EDT
 
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(Reuters) - Platinum and palladium producer Stillwater Mining Co SWC.N said it has agreed to sell a fourth of its stake in the Marathon platinum group metals (PGM) and copper project in Canada to Mitsubishi Corp (8058.T: Quote) for $81.2 million.

Mitsubishi, Japan's largest trading house, will be responsible for funding its 25 percent share of expenditures on the properties, and will also have an option to purchase up to 100 percent of the PGM production under a related supply agreement.

The project, which Stillwater acquired in 2010, is expected to have a pre-production capital cost of between $550 and $650 million, the company said.

The transaction is expected to close within a few weeks, Stillwater said.

(Reporting by Vaishnavi Bala in Bangalore; Editing by Brenton Cordeiro)