Shares of Generation Mining soared after announcing billionaire Eric Sprott was making a C$5 million investment to acquire a 8.8 percent stake in the firm.
Shares of Generation Mining (CSE:GENM) soared 28 percent higher for the week after announcing Canadian billionaire Eric Sprott was making a C$5 million investment and acquiring an 8.8 percent stake in the firm.
As quoted from the press release:
Gen Mining is pleased to announce that Eric Sprott has agreed to purchase C$5,000,000 of the offering. On completion of the offering, Eric Sprott will own approximately 8.84 percent of the company on a non-diluted basis and approximately 12.70 percent on a partially diluted basis. The company has granted the underwriters an option to purchase up to an additional 25 percent of the offering in units, exercisable in whole or in part at any time up to 48 hours prior to the closing date. The net proceeds from the sale of the Units will be used for exploration and development of the company’s Marathon palladium project, as well as working capital and general corporate purposes. The Offering is expected to close on or about February 13, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities. The Units to be issued under the offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the offering.