Generation Mining (TSX: GENM) continues to push forward with securing project financing for its flagship Marathon Copper-Palladium project in Ontario. After receiving the final construction permit for the project on Thursday, a further source of funding has materialized to support development.
Without disclosing the name of the lender, Generation has indicated that a leading Canadian financial institution has provided a support letter to provide up to $200 million via a credit facility. The facility is expected to be in addition to the senior secured project finance facility that is yet to be arranged with senior lenders.
“We also continue to have access to $200 million of construction financing through our metals streaming agreement with Wheaton Precious Metals Corp., and we continue to have discussions with other corporate, institutional and retail investors, along with other alternative equity providers, to raise the remaining equity or subordinated financing required for construction in the least dilutive manner possible,” commented Jamie Levy, CEO of Generation Mining.
The support letter follows Generation on Thursday indicating that it has received a final key permit for the project. The project has received a permit for industrial sewage works from the Ontario Ministry of Environment, Conservation and Parks, which permits the management of discharge of water for the construction phase of the project.
The Marathon project, based on a 2025 feasibility study, requires $992 million in initial capital. $200 million has been secured via a Wheaton Precious Metals stream agreement, while a mandate letter has been received from a banking syndicate comprised of Export Development Canada, ING Capital, and Societe General to arrange a senior secured project finance facility for up to $540 million.
Marathon is expected to produce 2.2 million ounces of palladium, 488,000 ounces of platinum, 160,000 ounces of gold, 3.1 million ounces of silver and 532 million pounds of copper over a 13 year mine life.
Generation Mining last traded at $0.265 on the TSX.
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