Generation Mining (TSX: GENM) has added a further $200 million to the funding pile behind its Marathon copper-palladium project, with the Canada Infrastructure Bank granting internal credit approval for a subordinated debt facility.
The commitment lands just days after the company won credit approval for a US$310 million senior secured facility, worth roughly $424 million, from Export Development Canada, ING Capital and Société Générale.
The CIB package splits into two parts. A $110 million subordinated debt facility will go toward development and construction costs, while a $90 million standby facility sits in reserve to cover any cost overruns during the build.
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With the latest commitment in hand, Generation Mining now counts approximately $969 million of the capital needed to bring Marathon into production. Alongside the senior facility, that tally includes an undrawn $200 million metals streaming agreement with Wheaton Precious Metals and around $145 million in equipment leasing facilities.
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The deal also marks the CIB’s first investment in Ontario’s critical minerals sector, a point the federal Crown corporation tied to Marathon’s place in the broader supply chain for copper and palladium.
“Securing a commitment from the Canada Infrastructure Bank is another major step forward,” said President and Chief Executive Officer Jamie Levy, who framed the CIB as a natural partner given its mandate to draw private capital into infrastructure.
Levy added that the company is firmly on track toward a construction decision with the financing package taking shape.
The facility still hinges on final documentation, including an intercreditor agreement described as well advanced, plus the customary project finance conditions that come with a fully funded construction package. Generation Mining intends to push ahead on that paperwork in parallel with talks involving surety providers and equity investors.
A 2024 feasibility study put Marathon’s after-tax net present value at $1.07 billion using a 6% discount rate, with a 28% internal rate of return and a 1.9-year payback over an anticipated 13-year mine life.
Should the remaining financing fall into place, construction is expected to begin in the second half of 2026.
Generation Mining last traded at $0.68 on the TSX.
