Generation Mining (TSX: GENM; US-OTC: GENMF) has assembled almost all its financing for the $1-billion capex Marathon copper-palladium project in northern Ontario.
The $969 million total includes $200 million this week from the Canadian Infrastructure Bank (CIB), $424 million in senior debt from several lenders and a $240-million streaming deal with Wheaton Precious Metals (NYSE, TSX, LSE: WPM). That leaves about $150 million to be potentially raised through equity this fall, according to Haywood Securities mining analyst Pierre Vaillancourt. Construction would start in next year’s first half.
“With permitting and most of the financing complete, Generation is in good position to move the project forward,” Vaillancourt said in a note on Tuesday. “With copper at about $6.30 per lb. and palladium at $1,250 an oz., economics for Marathon are compelling, supported by strong copper revenues.”
Marathon, located on the north shore of Lake Superior, would be one of Ontario’s first critical minerals projects to enter production in years with its planned 2028 start. It would be one of North America’s few sources of palladium for hybrid and electric vehicles, and a top-five copper producer in the province. Generation has locked in offtake agreements for half of its 42-million-lb.-a-year copper output to Glencore (LSE:GLEN) to and the rest to an undisclosed European integrated group.
Federal funds
“It’s really, really rare that a company with a $200-million market cap is attempting to build an almost $1-billion capex mine,” Generation Chairman Kerry Knoll told The Northern Miner in a video call Tuesday. “Fortunately, the federal government, which wasn’t really there historically to help the mining industry, has stepped up in a big way.”
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