TORONTO, Feb. 15, 2022 (GLOBE NEWSWIRE) -- Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining” or the “Company”) is pleased to provide an update on the outcome of the exercise of the Company's warrants that expired on February 13, 2022.
Gen Mining is pleased to announce that a cumulative total of 10,123,494 warrants were exercised, generating aggregate proceeds of approximately $7.4 million. Of this amount, approximately $5.7 million of the warrants were exercised in 2022. The warrants consisted of common share purchase warrants (“Purchase Warrants”) exercisable at $0.75 per common share and broker warrants exercisable at $0.52 per common share. After giving effect to the warrant exercises, as at February 15, 2022 the Company has 179,917,408 common shares issued and outstanding. No common share purchase warrants remain outstanding.
The Company is also pleased to announce that 2176423 Ontario Ltd. (a corporation beneficially owned by Mr. Eric Sprott) exercised 4,807,693 Purchase Warrants for aggregate consideration of approximately $3.6 million. Mr. Sprott now beneficially owns and controls 16,423,079 shares representing approximately 9.1% of the Company’s outstanding shares (for additional details please refer to 2176423 Ontario Ltd.’s Early Warning Report filed under the Company’s profile on SEDAR at www.sedar.com ).
Jamie Levy, the President and CEO commented “We are extremely excited to have Mr. Sprott increase his equity ownership in the Company. He has been a significant supporter of our Company for several years."
Together with the Company's previous cash balances Gen Mining now has approximately $9.5 million in cash.
About the Company
Gen Mining’s focus is the development of its 100% owned Marathon Project, a large undeveloped platinum group metal mineral deposit in Northwestern Ontario. 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 property covers a land package of approximately 22,000 hectares, or 220 square kilometres. Gen Mining owns a 100% interest in the Marathon Project.
The Feasibility Study in respect of the Marathon Project estimated that at US$1725/oz palladium, and US$3.20/lb copper, Marathon’s Net Present Value (at 6% discount rate) is approximately C$1.07 billion with a payback of 2.3 years and an Internal Rate of Return of 30%. Up front capital costs were estimated at C$665 million. The mine would produce an estimated 245,000 palladium equivalent ounces per year over a 13-year mine life at an All-In Sustaining Cost of US$809 per palladium-equivalent ounce. For more information, please review the detailed Feasibility Study dated March 25, 2021, filed under the Company’s profile at SEDAR.com.
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President and Chief Executive
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "Projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, including statements relating to the Company advancing the Marathon Project to bring it into production. All forward-looking statements, including those herein are qualified by this cautionary statement.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information. These include commodity price volatility, continued availability of capital and financing, uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, the Company’s relationships with First Nations communities, exploration successes, and general economic, market or business conditions, as well as those risk factors set out in the Company’s annual information form for the year ended December 31, 2020, and in the continuous disclosure documents filed by the Company on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements.
Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions relating to: the availability of financing for the Company’s operations; operating and capital costs; results of operations; the mine development and production schedule and related costs; the supply and demand for, and the level and volatility of commodity prices; timing of the receipt of regulatory and governmental approvals for development Projects and other operations; the accuracy of Mineral Reserve and Mineral Resource Estimates, production estimates and capital and operating cost estimates; and general business and economic conditions.
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. For more information on the Company, investors are encouraged to review the Company’s public filings on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.