Vancouver — Pacific North West Capital (PFN-T, PAWEF-O) has landed a new major shareholder following Stillwater Mining’s (SWC-N) $2-million investment in the junior.
In the non-brokered deal at 45 apiece, about a 40% premium above Pacific’s market price prior to the announcement, Stillwater is purchasing 4.4 million shares of Pacific Northwest for an 11.2% interest. The cash infusion will bolster the junior’s treasury for continued property development in Ontario and Alaska, plus its ability to evaluate and acquire new projects.
Pacific North West’s flagship project is the River Valley platinum group metals project, located 65 km northeast of Sudbury, Ont. 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 and 0.06 gram gold.
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 the year, it reported net income of US$5.1 million on revenue of US$437.6 million production of 345,000 oz. palladium and 101,000 oz. 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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