Generation Mining (TSX:GENM) has closed a C$240 million ($240.7 million) equity raise to fund development of its Marathon Copper-Palladium Project in northwestern Ontario, Canada.
The company completed a C$200 million public offering and concurrent C$40 million private placement with Canada Growth Fund (CGF) at C$0.64 per share.
The public offering was conducted on a bought deal basis through a syndicate led by BMO Capital Markets, while CGF acquired 62.5 million shares through the private placement and an additional 76.5 million shares via the public offering.
CGF now holds 139 million shares, representing 19.9% of Generation Mining on a non-diluted basis.
The investment comes with board nomination rights, registration rights, and pre-emptive rights in future offerings, subject to maintaining specified ownership thresholds.
The company simultaneously entered into an offtake agreement with Glencore (LSE:GLEN) for polymetallic copper concentrate from Marathon.
The concentrate will support domestic processing at Glencore’s Horne smelter in Rouyn-Noranda, Québec, Canada’s only copper smelter, and the company’s CCR refinery.
Generation Mining plans to use proceeds for development, construction, and operation of the Marathon Project, plus associated administrative and financing costs.
The project’s November 2024 Feasibility Study estimated a net present value of C$1.07 billion using a 6% discount rate, with a 28% internal rate of return and 1.9-year payback period.
Over the anticipated 13-year mine life, Marathon is expected to produce 2.16 million ounces (Moz) of palladium, 532 million pounds of copper, 488,000 ounces of platinum, 160,000 ounces of gold and 3.05Moz of silver in payable metals.
Both offerings remain subject to final Toronto Stock Exchange approval.
Generation Mining is a Canadian critical minerals developer with a portfolio of base and precious metals assets.
Write to JC Villarba at Mining.com.au
Images: Generation Mining
