Entry into a Material Definitive Agreement.
On September 18, 2014, Stillwater Mining Company (the “Company”) entered into a Master Goods and Services Agreement (the “Services Agreement”) and related Precious Metals Supply Agreement (the “Supply Agreement” and together with the Services Agreement, the “Agreements”) with Johnson Matthey Inc. (“Johnson Matthey”), with whom the Company has a long standing relationship whereby Johnson Matthey has performed refining services for the Company and the Company has supplied precious metals to Johnson Matthey. Under the Agreements, Johnson Matthey has an exclusive five-year right to refine all of the PGM filter cake the Company produces at its Columbus, Montana facilities. Johnson Matthey also has the right to purchase all of the Company’s mine production of palladium and platinum at competitive market prices (with the exception of platinum sales under the Company’s existing sales agreement with Tiffany & Co., which are specifically excluded from the Supply Agreement) and has the right to bid for any recycling volumes the Company has available. Other provisions of the Agreements include a good-faith effort by Johnson Matthey to assist in growing the Company’s recycling volumes, appropriate sharing of market intelligence to the extent permitted by law, and a cooperative effort to evaluate and possibly develop new technologies. The Company also has the ability to terminate the Supply Agreement on 180 days’ notice and the Services Agreement after four years, in either case subject to payment of an additional fee per troy ounce to Johnson Matthey upon the terms of such agreement.
