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Generation Mining maintains operatorship and majority control of Marathon Project as Sibanye-Stillwater confirms it will not exercise ownership increase right
TORONTO, July 21, 2021 (GLOBE NEWSWIRE) -- Generation Mining Limited (TSX: GENM; OTCQB: GENMF) (“Gen Mining” or the “Company”) is pleased to announce that the C
About this update from Generation Mining Ltd.
[{"type":"text","content":" TORONTO, July 21, 2021 (GLOBE NEWSWIRE) -- Generation Mining Limited (TSX: GENM; OTCQB: GENMF) (“Gen Mining” or the “Company”) is pleased to announce that the Company’s joint venture partner in the Marathon Palladium Copper project (the “Marathon Project”), Sibanye-Stillwater, has elected not to exercise its ownership increase right to expand its ownership in the project to 51%. As a result, Gen Mining will retain effective operatorship of the Marathon Project and intends to advance the project expeditiously on the remaining key undertakings to bring the project into production, including the environmental assessment and permitting, final negotiations with First Nations, detailed engineering, and project financing. The Company intends to provide updates on these items in the coming weeks. In the coming months, Gen Mining will continue to advance the project financing alternatives (including potential non-dilutive funding options). The Company continues to be well financed to progress the Marathon Project with approximately $12 million cash on hand. “We are thrilled to have clarity on this key issue, which removes a perceived encumbrance on the Marathon Project,” states Jamie Levy, President and Chief Executive Officer of Gen Mining. “Sibanye-Stillwater has been an excellent partner. We look forward to advancing Marathon to production and I think our shareholders will ultimately benefit from this decision. This project’s time has come to be developed and being a Canadian-based company looking to produce critical minerals and green metals is a very exciting place for all of our stakeholders.” Sibanye-Stillwater had the right to increase its participating interest in the joint venture from its current participating interest to 51% by: (i) exercising the back-in right by paying to Gen Mining three times the amount not previously funded by Sibanye-Stillwater and which resulted in dilution below 20%; and (ii) agreeing to fund the capital costs estimated in the Company’s Feasibility Study dated March 25, 2021, multiplied by 31%. About the Company Gen Mining’s focus is the development of the Marathon Project, a large undeveloped platinum group metal Mineral Resource in North America. The Company released the results of the Feasibility Study on March 3, 2021 and published the NI43-101 Technical Report dated March 25, 2021. The Marathon ...