JOHANNESBURG – Sibanye Gold’s shareholders on Tuesday approved the South African miner’s R28.7 billion ($2.2 billion) buyout of US-based Stillwater Mining, moving it a step closer to significantly boosting its platinum portfolio.
About 82% of Sibanye shareholders voted in favour of the deal which will cement South Africa’s grip on global supply of platinum and advance chief executive Neal Froneman’s push to diversify away from gold and South Africa.
“We thank our shareholders for their support for this transaction which represents a unique and transformative opportunity to acquire world class, low-cost international PGM assets,” chief executive Neal Froneman said.
Sibanye, which was spun off from Gold Fields in 2013, last year bought Aquarius Platinum and Anglo American Platinum’s mines in Rustenburg. The Stillwater deal is its first venture beyond South Africa.
Stillwater, which operates in Montana, is the only US miner of platinum group metals (PGM) and the largest primary producer of PGMs outside South Africa and Russia.
Stillwater’s shareholders are due to meet on Tuesday to vote on the transaction.
Sibanye said it would fund the deal with a combination of debt and new equity. It expects the tranches of capital to be raised by the end of June.
($1 = R13.0376)