Super-luminous supernovae of type Ic have a tendency to occur in faint host galaxies which are likely to have low mass and low metallicity. PTF12dam is one of the closest and best studied super-luminous explosions that has a broad and slowly fading lightcurve similar to SN 2007bi. Here we present new photometry and spectroscopy for PTF12dam from 200-500 days (rest-frame) after peak and a detailed analysis of the host galaxy (SDSS J142446.21+461348.6 at z = 0.107). Using deep templates and image subtraction we show that the full lightcurve can be fit with a magnetar model if escape of high-energy gamma rays is taken into account. The full bolometric lightcurve from -53 to +399 days (with respect to peak) cannot be fit satisfactorily with the pair-instability models. An alternative model of interaction with a dense CSM produces a good fit to the data although this requires a very large mass (~ 13 M_sun) of hydrogen free CSM. The host galaxy is a compact dwarf (physical size ~ 1.9 kpc) and with M_g = -19.33 +/- 0.10, it is the brightest nearby SLSN Ic host discovered so far. The host is a low mass system (2.8 x 10^8 M_sun) with a star-formation rate (5.0 M_sun/year), which implies a very high specific star-formation rate (17.9 Gyr^-1). The remarkably strong nebular lines provide detections of the [O III] lambda 4363 and [O II] lambdalambda 7320,7330 auroral lines and an accurate oxygen abundance of 12 + log(O/H) = 8.05 +/- 0.09. We show here that they are at the extreme end of the metallicity distribution of dwarf galaxies and propose that low metallicity is a requirement to produce these rare and peculiar supernovae.
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