TORONTO, Oct. 04, 2018 (GLOBE NEWSWIRE) -- Generation Mining Limited (CSE: GENM) (the “Acquiror”) announces that it has acquired 4,200,000 common shares in the capital of Eastern Zinc. Corp. Inc. (CSE: EZNC) (the “Issuer”).
The Acquiror was a party to an option agreement (the “Option Agreement”) dated May 24, 2018 between the Acquiror and John Bernard Kreft (the “Optionor”) whereby the Acquiror held an option to acquire a 100% interest in the Clear Lake Property in Yukon.
Pursuant to an assignment, assumption and amending agreement in respect of the Clear Lake Property dated October 1, 2018 among the Acquiror, the Issuer, and the Optionor, the Acquiror assigned its interest in the Option Agreement to the Issuer, and the Issuer assumed the obligations of the Acquiror thereunder, in consideration for, among other things, the issuance (the “Issuance”) by the Issuer to the Acquiror of 4,200,000 common shares in the capital of the Issuer (“Common Shares”) effective on October 2, 2018 at a deemed price per share of $0.30, and a further issuance to the Acquiror of an additional 1,670,000 Common Shares effective on October 1, 2019.
Prior to the Issuance, the Acquiror did not hold any beneficial equity interest in the Issuer. Pursuant to the Issuance the Acquiror acquired the direct ownership of 4,200,000 Common Shares, which represents approximately 34.1% of the issued and outstanding Common Shares on a non-diluted basis.
The Common Shares were acquired for investment purposes. The Acquiror has a long-term view of the investment and may, depending on market and other conditions, or as future circumstances may dictate, from time to time, on an individual or joint basis, increase or dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position. Depending on market conditions, general economic and industry conditions, the Issuer’s business and financial condition and/or other relevant factors, the Acquiror may develop such plans or intentions in the future.
This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bids and Insider Reporting Issues in connection with the filing of an early warning report by the Acquiror (the “Early Warning Report”).
For further details, please see the Early Warning Report, a copy of which is available on the Issuer’s profile on SEDAR at www.sedar.com, or contact:
Generation Mining Limited
365 Bay Street, Suite 400
Toronto, Ontario, M5H 2V1
Attention: Jamie Levy, President and Chief Executive Officer
(416) 640-2934
(416) 567-2440
jlevy@genmining.com