Generation Mining raises $240M to fund Marathon copper-palladium project

Generation Mining Limited (TSX: GENM, OTCQB: GENMF) has closed a bought-deal public offering and a concurrent private placement, raising aggregate gross proceeds of $240 million to fund development of its Marathon Copper-Palladium Project in Northwestern Ontario.

The public offering, led by BMO Capital Markets as sole bookrunner alongside a syndicate that included TD Securities, Haywood Securities, Stifel Canada and others, resulted in the issuance of 312,500,000 common shares at $0.64 per share for gross proceeds of $200 million. Underwriters received a cash commission of 5% of gross proceeds, reduced to 3% for certain investors on a president's list.

Canada Growth Fund Inc. (CGF) participated through a concurrent private placement, acquiring 62,500,000 shares at the same $0.64 offering price for $40 million. CGF also purchased an additional 76,450,000 shares through the public offering for approximately $49 million, bringing its total holdings to 138,950,000 shares, or approximately 19.9% of issued and outstanding shares on a non-diluted basis.

In connection with the transaction, Generation Mining entered into an investor rights agreement with CGF, granting it board nomination and observer rights, registration rights, and pre-emptive rights subject to CGF maintaining specified ownership thresholds. The company also signed an offtake agreement with Glencore AG for the purchase of polymetallic copper concentrate from the Marathon Project, with processing planned at Glencore's Horne smelter in Rouyn-Noranda, Quebec, and its CCR refinery.

Net proceeds from both offerings are designated for the development, construction, and operation of the Marathon Project, along with general, administrative, and financing costs. The offerings remain subject to final approval by the Toronto Stock Exchange.

Certain company directors purchased an aggregate of 468,750 shares through the public offering, transactions classified as related-party transactions under Multilateral Instrument 61-101, though the company qualified for exemptions from formal valuation and minority shareholder approval requirements.

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