Vancouver – Pacific North West Capital (PFN-V, PAWEF-O) has landed a new major shareholder following Stillwater Mining‘s (SWC-N) $2-million investment in the junior to give it an 11.2% interest.
Stillwater is purchasing 4,444,444 shares of Pacific North West in the non-brokered deal at 45 apiece, about a 40% premium above market price on announcement. The cash infusion will bolster the junior’s treasury for continued property development in Ontario and Alaska, plus new project evaluation and acquisition.
Pacific North West’s flagship project is River Valley, located 65 km northeast of Sudbury. The 50-50 joint venture with Anglo Platinum (AGPPY-O, ANP-L, ANANP-J) has reviewed a measured and indicated resource of 30.5 million tonnes grading 0.97 gram palladium per tonne, 0.34 gram platinum per tonne and 0.06 gram gold per tonne.
The company is also earning into the West Timmins nickel project from Xstrata (XSRAF-O, XTA-L) and has a pair of Alaskan platinum properties: Goodnews Bay (100%) and Union Bay (earning up to 50%).
Stillwater operates a couple of underground palladium-platinum mines in south-central Montana. In the first nine-months of this year it reported net income of US$5.1 million on revenues of US$437.6 million from production of 345,000 ozs. palladium and 101,000 ozs. platinum and its precious metals recycling division.
Shares of Pacific North West got a market boost on the news, trading up about a nickel to the 36 level on strong volume.
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