Generation Mining Limited (TSX: GENM) has secured the rest of the money it needs to build its Marathon copper-palladium project. Commitments from the Canada Growth Fund and the Canada Infrastructure Bank complete a construction package of about C$1.3 billion.
The final funding totals C$340 million and comes in three parts. The largest is a $200 million bought deal of 312.5 million shares at $0.64 each, led by BMO Capital Markets. The Canada Growth Fund, Wheaton Precious Metals and Glencore Canada have already committed to about $100 million of it.
The Canada Growth Fund is also buying another $40 million in shares at the same price through a private placement. Its equity investment totals about $90 million, giving it a 19.9% stake on a partially diluted basis.
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The last $100 million comes as subordinated unsecured convertible notes, split evenly between the Canada Growth Fund and the Canada Infrastructure Bank. The notes pay 9% a year in cash or in kind and convert at a 40% premium to the equity price. They have an 11-year term.
The new money adds to senior secured debt, subordinated debt, a metal stream and equipment leasing that were previously arranged. The package also includes a $185 million cost overrun facility and a $119 million capital contingency.
Glencore AG has signed on to buy the mine’s concentrate. The offtake agreement starts with first commercial production, expected on September 1, 2028, and runs for at least 14 years. Glencore will take all of the concentrate in the first 2 years and from year 13 onward, and roughly half of annual output in the years between. The material will feed Glencore’s Horne smelter in Quebec, Canada’s only copper smelter.
“Today is a landmark day for Generation Mining,” said President and CEO Jamie Levy. “With financing now complete, we are thrilled to begin early works construction in Q4 2026 and move the Marathon Project toward production as Canada’s next major producer of copper and palladium.”
The company owns all of Marathon, which is fully permitted and located in northwestern Ontario. A 2024 feasibility study laid out a 13-year mine life. Over that time, the mine is expected to produce 2.16 million ounces of palladium, 532 million pounds of copper and 488,000 ounces of platinum, plus gold and silver. The study put the project’s net present value at C$1.07 billion, with an internal rate of return of 28%.
The bought deal is expected to close around September 21, pending approval from the Toronto Stock Exchange. Shareholders will vote on the convertible notes at a meeting planned for Q4 2026.
The board will make a final investment decision once all parts of the funding have closed.
Generation Mining last traded at $0.70 on the TSX.
