Home / Mining Company News Releases (Unreviewed) / Generation Mining Completes $2.5M Private Placement, Acquires Kennetcook Property, and Provides Corporate Update

Generation Mining Completes $2.5M Private Placement, Acquires Kennetcook Property, and Provides Corporate Update

Toronto, Ontario–(Newsfile Corp. – April 24, 2018) – Generation Mining Limited (the “Company“) is pleased to provide an update on its activities, which includes the completion of a private placement financing raising gross proceeds of $2,500,000 and entering into an option agreement in respect of the Kennetcook exploration property in Nova Scotia.

Private Placement

The Company is pleased to announce that is has closed a non-brokered private placement through the issuance of 22,550,000 units (“Units“) at a price of $0.10 per Unit, and the issuance of 2,450,000 flow-through common shares (“FT Shares“) at a price of $0.10 per FT Share, for aggregate gross proceeds of $2,500,000 (the “Offering“). Each Unit consists of one common share (“Common Share“) and one-half of one Common Share purchase warrant (“Warrant“). Each whole Warrant entitles the holder thereof to purchase one additional Common Share at a price of $0.20 per Common Share until April 20, 2020.

In connection with the completion of the Offering, certain eligible persons (the “Finders“), were paid a cash commission equal to 6% of the proceeds raised from subscribers introduced to the Company by such Finders, and issued finder warrants (the “Finder Warrants“) equal to 6% of the securities purchased by such subscribers. Each Finder Warrant entitles the holder thereof to purchase one Common Share at a price of $0.10 per Common Share until April 20, 2020.

All securities issued in connection with the Offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The net proceeds of the Offering will be used for general working capital and to fund the continued evaluation of the Company’s exploration projects.

Acquisition of Kennetcook Property

The Company is also pleased to announce that, pursuant to a Claims Acquisition Agreement dated March 16, 2018 (the “Agreement“), it has acquired a 100% interest in certain mining licences in Nova Scotia (the “Kennetcook Property“) from arm’s length and non-arm’s length vendors. As consideration for the Kennetcook Property, the Company issued an aggregate of 3,000,000 Common Shares to the vendors. The Common Shares issued pursuant to the Agreement are subject to a hold period expiring on August 10, 2018.

The Kennetcook Property is composed of 9 mineral licenses, or 690 claims, totaling 11,040 Hectares, in central Hants County Nova Scotia. The mineral licenses are contiguous and parallel to the Kennetcook River, and straddling the low to highland transition along the southwest to northeast trending Rawdon Fault Zone (RFZ). Upon considerable technical review, compilation, geophysical modelling and interpretation, the Company has concluded that this 40km segment of the RFZ, and immediate geologic surroundings, has the potential to host a large tonnage, economic deposits of carbonate hosted Zn-Pb-Ag-Cu or Paleo-placer Au mineralization. Geotech Ltd., Mississauga, Ontario has been contracted to collect 769 line-km’s of Helicopter Borne Electromagnetic and Total Field Magnetic Intensity measurements with the VTEMmax system (Versatile Time Domain Electromagnetic), a high amplitude, large footprint, deep penetrating EM system capable of detecting low to moderate conductivity, large footprint/tonnage sulphide systems at depths of 500m or more.

Stephen Reford, P.Eng., Director of the Company, a “Qualified Person” under National Instrument 43-101 — Standards of Disclosure for Mineral Projects, has reviewed and approved the technical information presented in this press release.

Corporate Update

Further to the joint press release dated February 23, 2018 issued by Pine Point Mining Limited (“Pine Point“) and Osisko Mining Corporation (“Osisko Metals“), the Company was spun-off from Pine Point pursuant to a statutory plan of arrangement (the “Arrangement“) by Pine Point and involving Osisko Metals effective February 23, 2018, and the Company acquired certain assets and liabilities from Pine Point and became a reporting issuer in certain jurisdictions in Canada.

The assets of the Company acquired from Pine Point pursuant to the Arrangement include:

  • Pine Point’s interest in the Davidson Molybdenum project located in central western British Columbia;
  • Pine Point’s interest in the Clear-Lake zinc-lead-silver project located in Yukon;

  • Pine Point’s interest in the “Darnley Bay Anomaly” and diamond project in Northwest Territories; and

  • Pine Point’s interest in the Nak copper-gold project in British Columbia.

The directors and officers of the Company are Jamie Levy (President, Chief Executive Officer, and director), Kerry Knoll (Chairman and director), Stephen Reford (director), Halina McGregor (Chief Financial Officer), and Patricia Mannard (Vice-President — Finance).

After giving effect to the Offering and the Acquisition of the Kennetcook Property, the Company now has 43,969,934 Common Shares outstanding, and available cash of approximately $2,400,000.

The Company has made application to list the Common Shares on the Canadian Securities Exchange, and will provide a further update on the status and timing of such listing application.

About Generation Mining Limited

Generation Mining Limited is a base and precious metals exploration and development company with various property interests throughout Canada. Its primary business objective is to explore and further develop the Davidson Molydbenum project in British Columbia and its other mineral properties, and to continue to increase its portfolio of base and precious metal property assets through acquisitions.

For further information please contact:

Jamie Levy
President and Chief Executive Officer
(416) 567-2440
[email protected]

ForwardLooking Information

This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes 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 forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business 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 statements. For more information on the Company, investors are encouraged to review the Company’s public filings at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

 

Disclaimer: This is an unedited and minimally reviewed public mining company press release originally published at http://www.newsfilecorp.com/release/34212/Generation-Mining-Completes-2.5M-Private-Placement-Acquires-Kennetcook-Property-and-Provides-Corporate-Update. We have linked to our knowledge base articles from within the content of this release in order to help explain some of the terminology used and provide continuity from previous and related news coverage. You can access more in-depth mining company project reviews on our site, as well a knowledge base of articles on mineral exploration, mining and geology-related topics.

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