- Generation Mining (GENM) completes acquisition to become 100 per cent owner of the Marathon Project
- The transaction was completed with the terms and conditions set out in the acquisition agreement dated December 8, 2021
- The closing of the transaction has received conditional approval, but remains subject to receipt of final approval
- Sibanye-Stillwater owned 11,053,795 common shares, representing approximately 7.34 per cent of its issued and outstanding common shares
- Generation Mining Limited (GENM) is up 2.25 per cent, trading at C$0.91 at 12:34 pm EST
Generation Mining Limited (GENM) has completed the acquisition of the remaining 16.5 per cent interest in the Marathon Palladium Copper project.
The Marathon Palladium project is located in northwestern Ontario.
The transaction was completed in accordance with the terms and conditions set out in the acquisition agreement dated December 8, 2021, between Generation Mining, Stillwater, and Generation PGM Inc., its wholly-owned subsidiary.
Pursuant to this, it issued 21,759,332 common shares in the capital of the company to Stillwater.
The common shares issued pursuant to the transaction are subject to a statutory hold period in Canada of four months and one day, as well as certain contractual lock-up and resale restrictions for a period of 18 months.
The closing of the transaction has received conditional approval, but remains subject to receipt of final approval, from the TSX.
Generation Mining now holds 100 per cent of the Marathon Project, and the joint venture agreement dated July 10, 2019, between Stillwater and Gen Subco has been terminated in accordance with its terms.
Prior to the closing of the transaction, Sibanye-Stillwater (including its affiliates) owned 11,053,795 common shares, representing approximately 7.34 per cent of its issued and outstanding common shares on a non-diluted basis.
Upon completion of the transaction, Sibanye-Stillwater now owns 32,813,127 common shares, representing approximately 19.1 per cent of the issued and outstanding common shares on a non-diluted basis.
Depending on the market and other conditions, or as future circumstances may dictate, Sibanye-Stillwater (including its affiliates) may from time to time increase or decrease its holdings of common shares or other securities of the company.
“…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 the construction of the Marathon Project,” said Jamie Levy, Gen Mining President and CEO.
“Gen Mining is honoured to have Sibanye-Stillwater as an important shareholder in the Company going forward,” added Levy.
Gen Mining’s focus is the development of the Marathon Project, a large undeveloped platinum group metal mineral deposit in Northwestern Ontario.
Generation Mining Limited (GENM) is up 2.25 per cent, trading at C$0.91 at 12:34 pm EST.