TORONTO, December 22, 2020 (GLOBE NEWSWIRE) – Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Generation Mining” or the “Company”) is pleased to announce a fully subscribed, unbroken private placement of 4,295 .000 common shares (the “Shares”) The Company, which will be sold on a flow-through basis at a price of $ 0.77 per share for gross proceeds to Company of $ 3,307,150 (theoffer”). Approximately 47% The offering is subscribed by a company controlled by Eric Sprott, making it the largest shareholder in the company’s common stock.
“We are grateful for the continued support of our shareholders, including Mr. Sprott, now our largest shareholder,” said Jamie Levy, President and Chief Executive Officer. Upon completion of this flow funding, Generation Mining will have more than $ 12 million in the bank. “With this funding, Generation Mining can follow up on the results of our 2020 exploration season while continuing to work on our 2021 feasibility study and permit.”
The gross proceeds from the sale of the Shares will be used to incur “Canadian Exploration Expenses” within the meaning of Subsection 66.1 (6) of the Income Tax Act (Canada) (“Tax law“) On the company’s marathon property in the province of Ontario and waived to subscribers to the offer effective December 31, 2020. These Canadian exploration costs also qualify as “flow-through mining expenses” for the purposes of Subsection 127 (9). of the Tax Act.
A brokerage commission of 6% is paid for part of the offer.
An application was filed with the Toronto Stock Exchange (“TSX”) For conditional approval of the offer under Section 607 of the TSX Company Manual.
The offering is expected to close on or before December 31, 2020 and is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals, including the approval of the TSX.
About Generation Mining Limited
Generation Mining’s focus is on developing the Marathon Palladium Project, the largest undeveloped platinum group metal mineral resource in North America. The marathon property comprises a land package of approximately 22,000 hectares or 220 square kilometers. Generation Mining acquired a 51% stake in the marathon project from Sibanye Stillwater in 2019 and has since increased that stake to 80%. Upon completion of the feasibility study, Sibanye Stillwater will have certain return rights that can bring the interest in the property back to 51% (see the company’s press release dated July 11, 2019 for more information). A feasibility study was started in the second quarter of 2020 and is expected to be completed in the first quarter of 2021.
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This press release contains certain statements that may be deemed “forward-looking statements”. All statements in this press release, other than historical facts, relating to future production, reserve potential, exploration drilling, exploration activity, and events or developments that the company anticipates are forward-looking statements. Although the company believes that the expectations expressed in these statements are based on reasonable assumptions, these statements are no guarantee of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those expressed in the forward-looking statements. This includes market prices, exploration and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that such statements are no guarantee of future performance and that actual results or developments may differ materially from those forecast in the forward-looking statements. For more information about the company, investors are encouraged to review the company’s public filings at www.sedar.com. The company disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events, or for reasons other than required by law.