Generation Mining (TSX: GENM) has started construction at its Marathon copper-palladium project in northwestern Ontario, launching an early works program expected to run through the fourth quarter of 2026 and into 2027.
Work began after the company posted a C$6.5 million bond covering the construction phase of the project’s closure plan. Financial assurance at Marathon is posted in stages under Ontario’s Mining Act, with each tranche sized to the rehabilitation obligations of that phase of work. That structure lets the company begin construction without securing the full life-of-mine closure obligation up front.
The early works scope includes upgrades to site access roads and the main entrance, clearing of the plant site, laydown areas and initial pit footprint, and construction of early water management structures. Crews will also expand the existing camp to handle both construction and permanent workforce needs, set up a temporary fuel farm and site offices, begin bulk earthworks and aggregate production, and install temporary power.
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Procurement is moving in parallel. Generation expects to make initial payments of roughly $30 million to secure about $150 million in critical equipment, including mining equipment, the primary crushing station, grinding and regrind mills, flotation equipment and thickeners. The company said those purchases are, in aggregate, at or below the feasibility study budget, with deliveries falling within the baseline schedule.
President and CEO Jamie Levy said the company spent years preparing the project, and that its focus now shifts to “executing safely, on schedule and on budget.”
The move follows Generation’s September announcement that it had secured $340 million in final funding to complete a fully financed construction package. That round was anchored by roughly $140 million from Canada Growth Fund, split between about $90 million in equity and a $50 million convertible note, along with $50 million from Canada Infrastructure Bank. Glencore also agreed to purchase the mine’s copper concentrate.
The project’s November 2024 feasibility study outlined an after-tax net present value of $1.07 billion at a 6% discount rate, alongside a 28% internal rate of return. Over a 13-year mine life, Marathon is expected to produce about 2.16 million ounces of palladium and 532 million pounds of copper in payable metal.
Generation Mining last traded at $0.56 on the TSX.
