Generation Mining Announces C$8 Million “Bought Deal” Private Placement of Units Including a C$5 Million Investment from ...
January 22 2020 - 7:10AM
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Generation Mining Limited (CSE:GENM)
("Gen Mining" or the "Company")
is pleased to announce that it has entered into an agreement with
Haywood Securities Inc. and Mackie Research Capital Corporation as
co-lead underwriters and joint-bookrunners on behalf of a syndicate
of underwriters including PowerOne Capital Markets Limited and
Raymond James Ltd. (collectively, the
"Underwriters"), pursuant to which the
Underwriters have agreed to purchase, on a "bought deal" private
placement basis, 15,385,000 units of the Company (the
"Units") at a price of C$0.52 per Unit (the
“Issue Price”), for total gross proceeds of
C$8,000,200 (the "Offering"). Each Unit will
consist of one common share (a “Common Share”) in
the capital of the Company and one-half (1/2) of one common share
purchase warrant (each whole common share purchase warrant, a
“Warrant”) of the Company. Each Warrant shall be
exercisable to acquire one Common Share (a “Warrant
Share”) at a price per Warrant Share of C$0.75 for a
period of 24 months from the closing date of the Offering.
Gen Mining is pleased to announce that Eric
Sprott has agreed to purchase C$5,000,000 of the Offering. On
completion of the Offering, Eric Sprott will own approximately
8.84% of the Company on a non-diluted basis and approximately
12.70% on a partially diluted basis.
The Company has granted the Underwriters an
option to purchase up to an additional 25% of the Offering in Units
(the "Underwriters’ Option"), exercisable in whole
or in part at any time up to 48 hours prior to the closing
date.
The net proceeds from the sale of the Units will
be used for exploration and development of the Company’s Marathon
Palladium Project, as well as working capital and general corporate
purposes.
The Offering is expected to close on or about
February 13, 2020 and is subject to certain conditions including,
but not limited to, the receipt of all necessary approvals
including the approval of the Canadian Securities Exchange and the
applicable securities regulatory authorities. The Units to be
issued under the Offering will be subject to a hold period in
Canada expiring four months and one day from the closing date of
the Offering.
In connection with the Offering, the
Underwriters will receive: (i) a cash commission of 6.0% of the
gross proceeds of the Offering, excluding gross proceeds from the
issuance of Units to Eric Sprott for which a commission of 4.0% of
such gross proceeds is payable by the Company to the Underwriters;
and (ii) that number of non-transferable compensation options (the
“Compensation Options”) as is equal to (a) 6.0% of
the aggregate number of Units sold under the Offering, excluding
those Units sold to Eric Sprott, and (b) 4.0% of the aggregate
number of Units sold under the Offering to Eric Sprott. Each
Compensation Option is exercisable into one Common Share of the
Company at the Issue Price for a period of 24 months from the
closing date of the Offering.
The securities offered have not been registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities in
any State in which such offer, solicitation or sale would be
unlawful.
About Generation Mining
Limited
Generation Mining Limited is focused on
advancing the Marathon Deposit, 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. Gen Mining acquired a 51% interest in the
Marathon Property from Sibanye Stillwater on July 10, 2019 and can
increase its interest to 80% by spending $10 million over a period
of four years. More than $3 million of this has already been spent.
Sibanye Stillwater has certain back-in rights that can bring its
interest in the Property back to 51% after such time as Gen Mining
has earned its 80% interest (see the Company’s press release of
July 11, 2019, for more details). The Company’s common shares trade
on the Canadian Securities Exchange (“CSE”) under the symbol
GENM.
For further information please contact:
Jamie LevyPresident and Chief Executive
Officer(416) 640-2934(416) 567-2440jlevy@genmining.com
Forward-Looking Information
This news release includes certain information
that may be deemed “forward-looking information” under applicable
securities laws. All statements in this release, other than
statements of historical facts, that address timing and completion
of the Offering and events or developments that the Company expects
is forward-looking information. 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
the forward-looking information. These include the results of the
Company’s due diligence investigations, market prices, 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 information. 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 information, whether as a
result of new information, future events or otherwise, other than
as required by law.
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