Maybe the former Montana Governor will shine a big spotlight on Stillwater's Montana potential. I think the former Gov. wants Stillwater's appointed brass to focus on the home front in Montana rather than zipping off to Buenos Aires, in the corporate party jet, to take Tango lessons. Eh? (Metaphorically speaking). Stillwater could double, even tripple, the size of their Montana operation, and staff, and still hardly put a dent in all the profits that beg to be made. PEM could become Stillwater's new dance partner should Stillwater wish to Tango closer to home.

Report: Ex-governor of Montana and hedge fund manager target Stillwater Mining Company

BILLINGS, Mont. — Montana's bolo tie-wearing former governor teamed up Monday with an unlikely ally — a New York hedge fund — to launch a fight for control of a precious metals mining company they criticize for sinking hundreds of millions of dollars into projects in Canada and Argentina.

Democrat Brian Schweitzer said he's intervening along with the Clinton Group hedge fund to save Stillwater Mining Co. and its 1,500 employees from the same fate that befell Montana's legendary Anaconda Mining Co. That copper industry giant cratered after the Chilean government took over much of its foreign assets in the 1970s, leading to large-scale layoffs among Montana miners.

Schweitzer wants Stillwater to refocus on its two Montana mines. Billings-based Stillwater operates the only platinum and palladium mines in the U.S., deep beneath southern Montana's rugged Beartooth Mountains.

The former governor owns 25,000 shares of Stillwater, worth roughly $325,000 at current prices. The Clinton Group holds almost 1.3 million shares, giving it a 1 percent stake in the company.

The Clinton Group said it issued formal notice Monday of its intentions to oust Stillwater's leadership and seat a new slate of directors, including Schweitzer, during an April shareholder meeting.

The proxy fight marks Schweitzer's most visible action since leaving office last month. It demonstrates he's still keen to make headlines as he's mentioned as a potential challenger to fellow Democrat U.S. Sen. Max Baucus in 2014 and even as a dark horse presidential candidate in 2016.

Schweitzer brushed aside questions about his political future during an interview, and said he's committed for now to helping revive the fortunes of one of the Montana's most high-profile companies. He said his interest was first sparked by the Clinton Group's December letter seeking the ouster of McAllister, and that he approached the firm soon after leaving office.

"I've got some time on my hands and I'd like to help turn this company around," he said. "You've got a company that's draining its equity, and you can't run a mine if you don't have any money and don't have equity."

Stillwater spokesman John Beaudry referred questions Monday to company executives, who did not immediately return calls from The Associated Press seeking comment.

Stillwater shares were virtually unchanged after rising 1 cent, or 0.08 percent, to $13.00, in Monday morning trading on the New York Stock Exchange.

The overwhelming majority of the platinum and palladium mined by the company is used by automotive companies in catalytic converters, which help control pollution.

Buoyed by high precious prices for those metals, Stillwater made two major purchases in recent years that executives said were needed to diversify its holdings. That included purchases of a palladium and gold reserve in Canada, worth $118 million when it was announced, and a copper and gold reserve in the Andes of Argentina worth $450 million.

An estimated $23 million has been spent on exploration and other activities in the two countries.

The company has since revealed that the palladium content of the Canadian reserve was overestimated. And the copper deposit in Argentina could cost up to $2.5 billion to develop, a questionable prospect in a country with unsettled politics that have prompted other companies to stay out, Schweitzer said.

Schweitzer said he wants the company to consider putting the foreign assets, particularly the Argentina reserves, up for sale. That comes after the Clinton Group in December called for the retirement of Stillwater Chairman and Chief Executive Officer Frank McAllister.

Stillwater's stock price has dropped by about two-thirds since it hit a high of $40 in March 2000. The share price in recent weeks has been in the $13-$14.50 range. The company's stock generally tracks with precious metals prices, but dropped sharply after the 2011 purchase of Peregrine Metals, which controlled the copper and gold reserves in Argentina.

Schweitzer bought his shares in the company between Jan. 23 and Feb. 20.

Stillwater last year sold a 25 percent stake in the Canadian reserves, known as Marathon, to Mitsubishi Corp. for $81 million and has said mining is likely to begin in 2017.

Directors at Stillwater currently make about $200,000 a year, a compensation level that Clinton Group Manager Gregory Taxin said was reasonable, given the company's size.

Taxin said Schweitzer was not being paid to be a nominee nor as a consultant, although the former governor would be paid as a director if the proxy fight is successful.

The Clinton Group has about a 2 percent stake in Stillwater after starting to invest in the company last summer, Taxin said

While the Clinton Group's relatively small stake in the company doesn't guarantee success in the proxy battle, Taxin said recent declines in the share price show other investors also are unhappy with how the company is being run