Generation Mining Limited, further to its press release from December 8th, 2021, declared the acquisition of the leftover 16.5% interest in the Marathon Palladium Copper project in Northwestern Ontario from Stillwater Canada Inc, which is a subsidiary of Sibanye Stillwater Limited.
The Transaction was carried out as per the terms and conditions outlined in the acquisition agreement dated December 8th, 2021 between the Company, Stillwater, and Generation PGM Inc., the Company’s 100% owned subsidiary. The Company has issued 21,759,332 common shares in the capital of the Company to Stillwater in accordance with this.
The common shares issued as per the Transaction are liable to a statutory hold period in Canada of four months and one day, as well as a few contractual lock-up and resale limitations for an 18 months period. The closing of the Transaction has obtained conditional approval but stays subjected to the receipt of final approval, from the Toronto Stock Exchange.
Currently, the Company owns 100% of the Marathon Project, and the collective venture agreement dated July 10th, 2019 between Stillwater and Gen Subco has been ended under its terms.
Before the closing of the Transaction, Sibanye-Stillwater (such as its affiliates) owned 11,053,795 common shares of the Company. This represents around 7.34% of the Company’s issued and outstanding Common Shares on a non-diluted basis.
Sibanye-Stillwater (including its affiliates) owned 32,813,127 common shares of the Company, upon completion of the Transaction. It symbolizes around 19.1% of the issued and outstanding common shares of the Company on a non-diluted basis.
Based on market and other conditions, or as future conditions might decree, Sibanye-Stillwater (and its affiliates) may from time to time increase or decrease its holdings of common shares or the Company’s other securities. A copy of the early warning report would be available on the Company’s issuer profile on SEDAR.
In addition to now holding a 100% ownership interest in the Marathon Project, the completion of the Transaction also allows us to proceed with the recently-announced streaming transaction with Wheaton Precious Metals and we expect it to be beneficial in negotiating with other lenders to finance construction of the Marathon Project. Gen Mining is honored to have Sibanye-Stillwater as an important shareholder in the Company going forward.
Jamie Levy, President and CEO, Generation Mining Limited
The current press release does not add up an offer to sell or the solicitation of an offer to buy nor shall there be any issuance of the securities in any jurisdiction in which such solicitation, offer or sale would be unlawful before qualification or registration under the securities laws of any of this jurisdiction.
The press release also does not make an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as revised and such securities might not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration needs.
The scientific and technical content of this news piece was reviewed, verified and approved by Drew Anwyll, P.Eng., M.Eng, Chief Operating Officer of the Company, and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 - Standards of Disclosure for Mineral Projects.