Stillwater shareholders say “da” to Norilsk

Shareholders of Stillwater Mining (SWC-N) have given the green light to Norilsk Nickel’s cash-and-metal offer for 51% of the Montana-based company.

Stillwater says that about 82.9% of the votes cast at a special meeting on June 16 were in favour of the deal.

Stillwater, the lone primary producer of platinum group metals in the U.S., also said that the Federal Trade Commission granted it an early termination of the waiting period required under U.S. antitrust laws.

Stillwater hopes to wrap up the transaction later this month.

Under the deal, the world’s largest producer of palladium would pay US$100 million in cash and deliver around 877,000 oz. of palladium for its majority stake. At its unveiling late last year, the metal portion was worth about US$241 million. At the end of business on June 16, the metal’s value had shrunk to US$161.4 million, based on a London afternoon closed of US$184 per oz. of palladium.

If approved, the deal would see Stillwater mint some 45.5 million new shares for issue to Russia’s Norilsk, more than doubling the current number of outstanding shares.

Stillwater has been scrambling to raise cash after development of two Montana mines, East Boulder and Stillwater, sent debt soaring just as the price of palladium fell to 5-year lows.

Stillwater shares were trading US13 higher at US$4.75 in late afternoon trade on the New York Stock Exchange on June 16.