Generation Mining Announces Fully Subscribed Flow Through Financing Led by Eric Sprott
December 22 2020 - 7:00AM
Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Generation
Mining” or the “Company”) is pleased to announce a fully
subscribed non-brokered private placement of 4,295,000 common
shares (the “
Shares”) of the Company to be issued
on a flow-through basis at a price of C$0.77 per Share for gross
proceeds to the Company of C$3,307,150 (the
“
Offering”). Approximately
47% of
the Offering will be subscribed to by a company controlled by Mr.
Eric Sprott, making it the largest shareholder of the Company’s
common shares.
“We are very grateful for the continued support
of our shareholders, including Mr. Sprott, now our largest
shareholder,” stated Jamie Levy, President and Chief Executive
Officer. After closing this flow- through financing, Generation
Mining will have more than $12 million in the bank. “This financing
will allow Generation Mining to follow up on the results of our
2020 exploration season, while continuing to work on our
feasibility study and permitting in 2021.”
Gross proceeds received from the sale of the
Shares will be used to incur “Canadian exploration expenses” as
defined in subsection 66.1(6) of the Income Tax
Act (Canada) (the “Tax Act”) on the Company’s
Marathon Property in the Province of Ontario, and renounced to
subscribers in the Offering effective December 31, 2020. Such
Canadian exploration expense will also qualify as a “flow-through
mining expenditure” as defined in subsection 127(9) of the Tax
Act.
A brokerage commission of 6% will be paid on a
portion of the Offering.
An application has been filed with the Toronto
Stock Exchange (“TSX”) for conditional approval of
the Offering pursuant to Section 607 of the TSX Company Manual.
Closing of the Offering is expected to occur 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 the development of
the Marathon Palladium Project, the largest undeveloped platinum
group metal Mineral Resource in North America. The Marathon
property covers a land package of approximately 22,000 hectares, or
220 square kilometres. Generation Mining acquired a 51% interest in
the Marathon Project from Sibanye Stillwater in 2019 and has since
increased that ownership to 80%. Upon completion of the Feasibility
Study, Sibanye Stillwater has certain back-in rights that can bring
its interest in the property back to 51% (see the company's press
release of July 11, 2019, for more details). A feasibility study
was started in the second quarter of 2020 with completion expected
in the first quarter of 2021.
For further information please contact:
Jamie LevyPresident and Chief ExecutiveOfficer(416)
640-2934(416) 567-2440jlevy@genmining.com
Forward-Looking Information
This release includes certain statements that
may be deemed “forward-looking statements”. All statements in this
release, other than statements of historical facts, that address
future production, reserve potential, exploration drilling,
exploitation activities and events or developments that the Company
expects are forward-looking statements. Although the Company
believes the expectations expressed in such statements are based on
reasonable assumptions, such statements are not guarantees 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 in
forward-looking statements. These include market prices,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on 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, whether as a
result of new information, future events or otherwise, other than
as required by law.
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