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Generation Mining Completes C$8,000,160 Bought Deal Private Placement
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
About this update from Generation Mining Ltd.
[{"type":"text","content":" 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 Mining’s 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”). The gross proceeds of the Offering, less 50% of the Underwriters’ fees and all of the expenses of the Offering, will be held in escrow pending satisfaction of certain escrow release conditions, including the satisfaction of conditions precedent to the completion of the Transaction. In the event that the escrow release conditions are not satisfied within 90 days of the Closing Date (as defined below), the gross proceeds of the Offering will be returned to the holders of the Subscription Receipts and the Subscription Receipts shall be cancelled. Each Unit shall be comprised of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”) of the Company. 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 wit...