Generation Mining Limited (TSX:GENM, OTCQB: GENMF) ("Gen Mining"
or the "Company") is pleased to announce that it has filed a final
short form base shelf prospectus (the “Prospectus“) with the
securities regulatory authorities in each of the provinces and
territories of Canada, except Quebec.
The Company has filed the Prospectus in order to have greater
financial flexibility going forward but has no immediate plans to
issue any securities under it at this time, and may never proceed
with any such issuance. Upon issuance of a receipt for the
Prospectus by the securities regulatory authorities, the Company
may issue and sell up to C$60,000,000 in the aggregate of common
shares, debt securities, warrants, subscription receipts, units, or
any combination thereof, from time to time, over the 25-month
period that the Prospectus remains effective. Should the Company
decide to offer securities during the 25-month effective period,
the specific terms, including the use of proceeds, will be set
forth in a prospectus supplement to the Prospectus, which will be
filed with the applicable Canadian securities regulatory
authorities.
“As the Generation team continues to advance the Marathon
Palladium-Copper Project toward final construction permits and
eventual production, global macro events independent of our project
can benefit our shareholders,” said Jamie Levy, President and CEO
of the Company. “Over the next 25 months, this prospectus will
ensure that Generation can rapidly raise capital when access is
available on favourable terms.”
This news release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities, in any province, state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
province, state or jurisdiction.
Upon issuance of the receipt, a copy of the short form base
shelf prospectus can be found under the Company's issuer profile on
SEDAR+ at www.sedarplus.ca.
Amended and Restated Technical
Report
In addition, today the Company has filed on SEDAR+ an amended
technical report for its Marathon Palladium-Copper Project entitled
“Amended Feasibility Study Update, Marathon Palladium-Copper
Project, Ontario, Canada” dated May 31, 2024 with an effective date
of December 31, 2022 (the “Amended Technical Report”).
The Amended Technical Report contains no changes to the material
disclosures in the previously filed technical report dated March
31, 2023 with an effective date of December 31, 2022 (the
“Technical Report”), including no changes to the estimated mineral
reserves and resources, the mine plan, cost estimates and economic
analysis.
The Amended Technical Report is being filed, as a result of a
review by staff of the Ontario Securities Commission, to remove
reference to certain statements relating to the Qualified Persons’
reliance on other experts and their liability for the contents of
the Technical Report which purported to limit the responsibility
and liability of the Qualified Persons. In addition, Table 15.6 –
Measured and Indicated Mineral Resource Whittle Shell Results for
Combined Diluted Model is being amended to correct labelling of
certain metal grade columns and Table 16.1 – Pit Phase Design
Summary and Table 16.3 – Shell and Design Comparison are being
amended to correct an error in how certain weighted average grades
were calculated.
About Generation Mining Limited
Gen Mining’s focus is the development of the Marathon Project, a
large undeveloped palladium-copper deposit in Northwestern Ontario,
Canada. On March 31, 2023, the Company released the results of a
Feasibility Study Update with an effective date of December 31,
2022. On May 31, 2024, the Company filed an Amended Feasibility
Study Update with the same effective date (the “Feasibility
Study”).
The Feasibility Study estimates a Net Present Value (using a 6%
discount rate) of C$1.16 billion, an Internal Rate of Return of
25.8%, and a 2.3-year payback. The mine is expected to produce an
average of 166,000 ounces of payable palladium and 41 million
pounds of payable copper per year over a 13-year mine life (“LOM”).
Over the LOM, the Marathon Project is anticipated to produce
2,122,000 ounces of palladium, 517 million lbs of copper, 485,000
ounces of platinum, 158,000 ounces of gold and 3,156,000 ounces of
silver in payable metals. For more information, please review the
Feasibility Study dated May 31, 2024, filed under the Company’s
issuer profile at www.sedarplus.com or on the Company’s website at
https://genmining.com/projects/feasibility-study/.
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.
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’ National Instrument
43-101 - Standards of Disclosure for Mineral Projects.
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 certain actions, events or results “may”, “could”, “would”,
“should”, “might” or “will” be taken, occur or be achieved,
including statements relating to the Prospectus, any shelf
prospectus supplements, the proposed use of proceeds from any
offering of Securities using the Prospectus, any related shelf
prospectus filings, the life of mine, mineral production estimates,
payback period, and financial returns from the Marathon
Project.
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 the timing for a construction decision;
the progress of development at the Marathon Project, including
progress of project expenditures and contracting processes, the
Company’s plans and expectations with respect to liquidity
management, continued availability of capital and financing, the
future price of palladium and other commodities, permitting
timelines, exchange rates and currency fluctuations, increases in
costs, requirements for additional capital, and the Company’s
decisions with respect to capital allocation, and the impact of
COVID-19, inflation, global supply chain disruptions, global
conflicts, including the wars in Ukraine and Israel, the project
schedule for the Marathon Project, key inputs, staffing and
contractors, commodity price volatility, continued availability of
capital and financing, uncertainties involved in interpreting
geological data, 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, 2023, and in the
continuous disclosure documents filed by the Company on SEDAR+ at
www.sedarplus.ca. 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.sedarplus.ca. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240530523632/en/
Jamie Levy President and Chief Executive Officer (416) 640-2934
(O) (416) 567-2440 (M) jlevy@genmining.com
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