Generation Mining Completes C$8,000,160 Bought Deal Private Placement
Summary
TORONTO, June 05, 2019 (GLOBE NEWSWIRE) Generation Mining Limited (CSE:GENM) (Gen Mining or the Company) is pleased to announce that it has completed its previously announced bought deal private placement of 28,572,000 subscription receipts (the Subscription Receipts) at a price of C$0.28 per Subscription Receipt (the Issue Price) for aggregate gross proceeds of C$8,000,160 (the Offering).The Offering was led by Haywood Securities Inc., on behalf of a syndicate of underwriters including Canaccord Genuity Corp., PowerOne Capital Markets Limited and PI Financial Corp. (together with Haywood, the Underwriters).Each Subscription Receipt will be automatically converted, without payment of additional consideration, into one unit of the Company (a Unit) in connection with Gen Minings previously announced binding letter of intent with Sibanye Gold Limited to earn an initial 51% interest (and potentially up to an 80% interest) in the Marathon PGM Property located near Marathon, Ontario (the Transaction). Each Warrant shall entitle the holder thereof to acquire one Common Share (a Warrant Share) for an exercise price of C$0.45 per Warrant Share for a period of 24 months from the date on which the escrow release conditions are satisfied.The net proceeds of the Offering will be used by Gen Mining to satisfy the remaining C$2,900,000 cash portion of the purchase price payable to Sibanye Gold Limited to complete the Transaction, for exploration and development of the Marathon PGM Property, and for working capital and general corporate purposes.In connection with the Offering, Gen Mining has paid the Underwriters a cash commission equal to 7.0% of the gross proceeds of the Offering and issued to the Underwriters compensation options which, upon satisfaction of the release conditions, will be automatically converted into compensation options to purchase that number of Units that is equal to 7.0% of the aggregate number of Subscription Receipts issued by the Company under the Offering at an exercise price that is equal to the Issue Price for a period of 24 months.The Subscription Receipts, the Common Shares, the Warrants and the Warrant Shares are subject to a hold period under applicable Canadian securities laws which will expire October 6, 2019.The Offering constituted a related party transaction within the meaning of Multilateral Instrument 61-101 (MI 61-101) as insiders of the Company subscribed for an aggregate of 4,816,129 Subscription Receipts. He has prepared or reviewed and approved the scientific and technical information contained in this news release.Generation Mining Limited is a base metal exploration and development company with various property interests throughout Canada. All statements in this release, other than statements of historical facts, that address the closing of the Offering, the conversion of the Subscription Receipts for Units, the receipt of regulatory and other approvals, the Transaction, the acquisition of the Marathon PGM Property and future work thereon, exploration activities and events or developments that the Company expects is forward-looking information. 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.