Generation Mining Announces C$15 Million Bought Deal Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Oct. 27, 2023 (GLOBE NEWSWIRE) -- Generation Mining Limited (TSX:GENM) ("Gen Mining" or the "Company") is pleased to announce that it has entered into an agreement with Haywood Securities Inc. (“Haywood”) sole underwriter and bookrunner, pursuant to which Haywood has agreed to purchase, on a bought deal basis, (i) 42,858,000 units (the “Units”) in the capital of the Company at a price of C$0.28 per Unit (the “Issue Price”), and (ii) 9,678,000 flow-through units (the “FT Units” and together with the Units, the “Offered Securities”) in the capital of the Company at a price of $0.32 per FT Unit (the “FT Issue Price”) for aggregate gross proceeds to the Company of $15,000,420 (the “Offering”).

Each Unit will consist of one common share (a “Common Share”) in the capital of the Company and one-fifth (1/5) of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company. Each FT Unit will consist of one Common Share that will qualify as a “flow-through share” and one-fifth (1/5) of one Warrant. Each whole Warrant shall be exercisable to acquire one Common Share (a “Warrant Share”) at a price per Warrant Share of C$0.50 for a period of 36 months from the closing date of the Offering.

The Company has agreed to grant Haywood an over-allotment option, exercisable at any time and from time to time on or prior to the date that is 30 days following the closing of the Offering, in whole or in part, to purchase up to an additional $2,250,063 in Units at the Issue Price to cover over-allotments, if any, and for market stabilization purposes.

The Company plans to use the net proceeds from the sale of the Units for development of the Company’s Marathon Project and for working capital and general corporate purposes. The gross proceeds from the sale of the FT Units will be used by the Company to incur eligible “Canadian Exploration Expenses” on the Marathon Project that will qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act (Canada).

The Offered Securities will be offered by way of a short form prospectus to be filed in all provinces of Canada, except Québec. The Units may also be sold to U.S. buyers on a private placement basis pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and other jurisdictions outside of Canada provided that no prospectus filing or comparable obligation arises.