Under the terms of the agreement, Stillwater will exchange 0.08136 shares of Stillwater common stock and $1.35 in cash for each common share of Peregrine.
On completion of the transaction, Stillwater will own approximately 89.5% and and Peregrine shareholders 10.5% stake in the combined company.
Stillwater will delineate, develop and operate Peregrine’s Altar porphyry copper-gold deposit in the San Juan province of Argentina.
Altar deposit has measured and indicated copper resources of 7.4 billion pounds of copper and inferred copper resources of 4.3 billion pounds, both at a 0.3% copper equivalent cut-off grade.
Stillwater is planning to invest about $75m over the next three years to advance exploration at the Altar deposit.
