Generation Mining Signs Definitive Acquisition Agreement with Sibanye- Stillwater
Generation Mining Signs Definitive
Acquisition Agreement with Sibanye-
Stillwater
Toronto, Ontario – June 25, 2019: Generation Mining Ltd. (the “ Company” or “Gen Mining”) has
signed an acquisition agreement w ith Sibanye Gold Ltd., trading as Sibanye-Stillwater, pursuant to
which, on closing the Company will earn an initial 51-per-cent interest (the “First Interest”) in
Sibanye-Stillwater's Marathon PGM deposit located near Marathon , Ontario (the “Property”) and
form an unincorporated joint venture with Stillwater Canada Inc. The property consists of 45 mining
leases totalling 8450 hectares , and an additional 856 contiguou s mining claims covering 8957
hectares for a total land package of 17,407 hectares. The clos ing is expected to take place by mid
July 2019.
Upon signing a letter of intent Gen Mining paid to Sibanye-Stil lwater a deposit of $100,000. To
acquire the First Interest, Gen M ining must pay an additional $ 2.9-million in cash and issue to
Sibanye-Stillwater 11,053,795 common shares at a deemed price per common share of $0.2714. Gen
Mining will become the operator of the joint venture and the Property (unless its interest in the joint
venture shall reduce to a minor ity interest) and will assume al l liabilities of the Property in such
operatorship capacity.
Gen Mining has the right to earn an additional 29-per-cent inte rest in the Property (the “Second
Interest”) within four years of the closing date (the “Second Earn-In Period”), by making total cash
expenditures on the Property of at least $10 million and delive ring a preliminary economic
assessment. During the Second Earn-In Period, Gen Mining must s ole-fund all expenditures in
respect of the Property and related activities.
Once Gen Mining has earned the Second Interest, the parties wil l fund expenditures on a pro rata
basis (80% funded by Gen Mining and 20% funded by Sibanye-Stillwater) in order to maintain their
respective interests in the joint venture, subject to normal dilution provisions.
If Gen Mining does not earn into the Second Interest, then for a period of 90 days after the termination
of the Second Earn-In Period, Sib anye-Stillwater shall have a o ne-time option to re-acquire from
Gen Mining a 31% participating in terest in the joint venture (f or a total 80% participating interest)
for CDN$1.00 and become operator under the joint venture.
Upon a feasibility study being prepared and the management committee of the joint venture making
a positive commercial producti on decision, so long as Sibanye-S tillwater has a minimum 20%
interest in the Property, then Sibanye-Stillwater will have 90 days to exercise an option to increase
its participating interest in the joint venture from its curren t percentage up to 51% (the “Percentage
Differential”) by agreeing to fund an amount of the total capit al costs as estimated in the feasibility
study, multiplied by the Percentage Differential, in addition to its pro rata proportion of costs that it
would fund at its current partic ipating interest level. Should this option be exe rcised, Sibanye-
Stillwater would also take over operatorship of the project at such time.
Further details about the Propert y and the transaction are avai lable in the Company’s news release
dated April 17, 2019.
About Generation Mining Limited
Generation Mining Limited is a base metal exploration and devel opment company with various
property interests throughout Canada. Its primary business objective is to explore and further develop
these properties, and to continue to increase its portfolio of base and precious metal property assets
through acquisition. The Company’s common shares trade on the C anadian Securities Exchange
(“CSE”) under the symbol GENM.
For further information please contact:
Jamie Levy
President and Chief Executive
Officer
(416) 640-2934
(416) 567-2440
Forward-Looking Information
This news release includes certain information that may be deemed “forward-looking information”
under applicable securities laws. All statements in this release, other than statements of historical
facts, that address acquisiti on of the Property and future work thereon, mineral resource and
reserve potential, exploration activities and events or developments that the Company expects is
forward-looking information. Although the Company believes the expectati ons expressed in such
statements are based on reasonable assumptions, su ch 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 coul d cause actual results to differ materially from those in the
forward-looking information. These include th e results of the Company’s due diligence
investigations, market prices, exploration successes, continued availability of capital and financing,
and general economic, market or business conditi ons. 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 at www.sedar.com. The
Company disclaims any intentio n or obligation to update or revise any forward- looking
information, whether as a result of new informa tion, future events or otherwise, other than as
required by law.