Generation Mining completes acquisition to become 100% owner of Marathon Project
Generation Mining completes
acquisition to become 100%
owner of Marathon Project
Toronto, Ontario – January 26, 2022 – Generation Mining Limited (TSX: GENM; OTCQB:
GENMF) (“Gen Mining” or the “Company”) is pleased to announce, further to its press release
dated December 8, 2021, that it has completed the acquisition (the “Transaction”) of the remaining
16.5% interest in the Marathon Palladium Copper project in Northwestern Ontario (the “Marathon
Project”) from Stillwater Canada Inc. (“Stillwater”) , a subsidiary of Sibanye Stillwater Limited
(“Sibanye-Stillwater”).
The Transaction was completed in accordance with the terms and conditions set out in the
acquisition agreement ( the “ Acquisition Agreement ”) dated December 8, 2021 between the
Company, Stillwater, and Generation PGM Inc. (“ Gen Subco”), the Company’s wholly-owned
subsidiary, pursuant to which the Company has 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 Toronto
Stock Exchange.
The Company now holds 100% 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 of the Company, representing approximately 7.34% of the Company’s
issued and outstanding Common Shares on a non -diluted basis. Upon completion of the
Transaction, Sibanye-Stillwater (including its affiliates) now owns 32,813,127 common shares of
the Company, representing approximately 19.1% of the issued and outstanding common shares of
the Company o n a non -diluted basis. Depending on 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. A copy of
the early warning report will be available on the Company’s issuer profile on SEDAR at
www.sedar.com.
“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,” said Jamie Levy, Gen Mining President and CEO.
“Gen Mining is honored to have Sibanye -Stillwater as an important shareholder in the Company
going forward.”
This press release shall not constitute 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 offer, solicitation or sale
would be unlawful prior to registration or quali fication under the securities laws of any such
jurisdiction. This press release does not constitute 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 amended, and such securities may 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 requirements.
Qualified Person
The scientific and technical content of this news release 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 N ational Instrument 43 -101 - Standards of
Disclosure for Mineral Projects.
About the Company
Gen Mining’s focus is the development of the Marathon Project, a large undeveloped platinum
group metal mineral deposit in Northwestern Ontario. The Company releas ed 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.
For further information please contact:
Jamie Levy
President and Chief Executive
Officer
(416) 640-2934
(416) 567-2440
Forward-Looking Information
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 certa in
actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or
be achieved, including statements relating to the completion of the streaming transaction with
Wheaton Precious Metals or financing with other lenders, or 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 ar e 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 materiall y 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 performan ce 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.