Generation Mining Ltd T.GENM

a new announcement on approval and date for SSW

[Ivorygull]

eom

Toronto, Ontario – April 30, 2021 –Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (FRA: 9GN) (“Gen Mining” or the “Company”) is pleased to announce that in accordance with the terms of the Marathon joint venture agreement dated July 10, 2019 (the “JVA”) entered into between the Company and Stillwater Canada Inc., a subsidiary of Sibanye Stillwater Limited (“Sibanye-Stillwater”), the management committee of the joint venture has by majority vote approved the Company’s Feasibility Study (previously filed on March 25, 2021) on the Marathon Palladium-Copper project in Northwestern Ontario (the “Marathon Project”).
 
The management committee is composed of four members, consisting of two representatives from each of Gen Mining and Sibanye-Stillwater. Gen Mining has 80.7% of the management committee votes in accordance with its proportional rights under the JVA, with Sibanye-Stillwater holding the remaining 19.3%.  
 
In accordance with the terms of a waiver and extension agreement dated April 30, 2021 entered into between the parties, the management committee has temporarily deferred consideration of a “commercial production decision”, as such term is defined in the JVA, until July 22, 2021 (the “Commercial Production Decision Date”).  As a result, the parties have agreed that Sibanye-Stillwater will have until the Commercial Production Decision Date to elect to exercise its rights under the JVA to increase its ownership interest in the Marathon Project.  During this period Gen Mining intends to continue with the exploration drilling along with the development of the Marathon Project, including progressing the Environmental Assessment, community relations, and detailed engineering.
 
Gen Mining, as the operator of the project will issue a further announcement when a commercial production decision has been reached.  In the event Sibanye-Stillwater provides an ownership increase notice, Sibanye-Stillwater would have the right to increase its participating interest in the joint venture from its then participating interest percentage up to 51% (the “Percentage Differential”) by: (i) exercising the back-in right by paying to Gen Mining three times the amount not previously funded by Sibanye-Stillwater and which resulted in dilution below 20%; and (ii) agreeing to fund the capital costs estimated in the Feasibility Study, multiplied by the Percentage Differential. Sibanye-Stillwater would also maintain the obligation to fund its proportionate share of costs based on its then current participating interest. Should this option be exercised, Sibanye-Stillwater would have a 51% interest in the Marathon Project and would have the option of becoming the operator of the project in accordance with the terms of the JVA.

[Ivorygull]

Oops.....better late than never LOL I just got the memo, well the email anyway.