Generation Mining’s stock soars on Sprott investment
Toronto-based Generation Mining (CSE: GENM) announced on Wednesday it has arranged a bought deal private placement with a group of underwriters, offering approximately 15.38 million units of the company at C$0.52 per unit to raise total proceeds of C$8 million.
Each unit comprises one common share in the capital of Generation Mining and one-half of one common share purchase warrant. Each full warrant shall be exercisable to acquire one common share at a price of C$0.75 for a period of 24 months from the placement closing date.
Canadian investor Eric Sprott has agreed to purchase C$5 million of the offered units. Upon completion of the offering, Sprott would own approximately 8.84% of Generation Mining on a non-diluted basis and 12.70% on a partially diluted basis.
Net proceeds from the offering will be used for exploration and development activities at the company’s Marathon palladium project in Ontario.
The property — located 215 km east of Thunder Bay and 10 km north of Marathon — was developed from 1985 to 2010 by various companies and was eventually owned by Marathon PGM Corporation. The property was later acquired by Sibanye-Stillwater. Generation Mining currently holds a 51% interest in the project.
Shares of Generation Mining rose by more than 12% midday Wednesday, at one point reaching an all-time high of C$0.74 a share. The company’s market capitalization is approximately C$65 million.