Generation Mining (GENM) is looking to raise more than C$3.3 million through a placement backed by Canadian billionaire Eric Sprott.
Under the terms of the financing, the Toronto-based resource development company intends to issue just over 4.29 million common shares at a price of $0.77 each.
Eric - who has made a wide range of investments in the Canadian precious metals sector this year - is expected to purchase approximately 47 per cent of the offering, making him Generation Mining's largest shareholder.
"We are very grateful for the continued support of our shareholders, including Mr. Sprott, now our largest shareholder," stated Jamie Levy, President and CEO of Generation Mining.
"This financing will allow Generation Mining to follow up on the results of our 2020 exploration season, while continuing to work on our feasibility study and permitting in 2021," he added.
Once the financing is complete, the company estimates it will have more than $12 million on its balance sheet.
The proceeds will be used to fund exploration work at its Marathon Palladium Project in Ontario, which is considered to be the largest undeveloped platinum group metal mineral resource in North America.
Late last month, Generation Mining said it had reached all the necessary requirements to earn an 80 per cent interest in the project after completing a preliminary economic assessment and assuming $10 million in joint venture expenses over a four-year period.
An initial 51 per cent stake in the Marathon Project was acquired from Sibanye-Stillwater Limited on July 10, 2019. The two companies will now be responsible for project expenses based on their relevant holdings.
Generation Mining is currently steady at $0.65 per share as of 11:32am EST.