Scaled 3D Model of the Coldwell Minerlized Demains Compared to the Marathon Deposit
Scaled 3D Model of the Coldwell Minerlized Demains Compared to the Marathon Deposit

Generation Mining (GENM.C) announced a bought deal to the tune of C$8M last week with Haywood Securities and Mackie Research Capital as co-lead underwriters. The bought deal was priced at C$0.52 per unit with each unit consisting of one common share as well as half a warrant with each full warrant entitling the warrant holder to acquire an additional share for C$0.75 within a 24 month period.

As the bought deal was seriously oversubscribed (truth is, Eric Sprott took C$5M of the C$8M bought deal so the demand from other investors was much higher than the C$3M available), we expect the underwriters to exercise their option to increase the financing size by 25% to C$10M as no firm will refuse the opportunity to make an additional 6% fee on C$2M. Should the bought deal indeed be upsized, Generation Mining will raise a total of C$10.7M as there was a concurring C$0.7M placement with another investor. After taking the finders fees into consideration, Generation Mining will add just over C$10M to its treasury which will put it in a very comfortable position to complete the earn-in deal with Sibanye Stillwater (SBGL). According to CEO Jamie Levy Generation has already spent approximately C$4M of the required C$10M to earn an 80% stake in the project and we wouldn’t be surprised to see Generation completing the earn-in deal by the end of this year.

Disclosure: The author has a long position in Generation Mining. Generation Mining is a sponsor of the website.

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