Generation Mining (TSX:GENM) has agreed to a non-binding term sheet with the Government of Ontario for an US$11 million ($15.4 million) loan to support construction of its Marathon Copper-Palladium Project processing facility in Canada.
The loan comes through Ontario’s Critical Minerals Processing Fund (CMPF), administered by Invest Ontario. Funding is based on a percentage of eligible project expenditures and maintaining minimum employment levels at the project, which is based in northwestern Ontario.
Construction costs for the processing facility and other eligible expenditures total approximately US$410 million, forming part of Marathon’s total capital cost of US$992 million outlined in the March 2025 Feasibility Study.
The facility remains subject to final documentation with customary terms and conditions. The CMPF loan complements the company’s previously announced construction financing package.
President and CEO Jamie Levy says Marathon is “one of the most advanced undeveloped copper-palladium projects in North America”, and this support helps the company finance its construction.
“I want to thank the government of Ontario for standing behind the project,” Levy says.
The Marathon Project is a fully permitted, construction-ready open pit copper-palladium mining complex located near Marathon in northwestern Ontario. The company has established off-take agreements and expects to produce copper and palladium for domestic and allied supply chains.
At full operation, Marathon says it expects to support more than 100 processing jobs and approximately 350 direct mining positions, alongside around 800 construction jobs during the build phase. The project aims to generate contracting opportunities for local and Indigenous-owned businesses across the region.
Generation Mining has established agreements with local Indigenous communities for meaningful participation in the project.
The CMPF is a US$500 million Government of Ontario program launched in December 2025 to accelerate critical mineral processing capacity across the province. The Ministry of Economic Development, Job Creation, and Trade manages the program, with Invest Ontario delivering it.
Invest Ontario CEO Khawar Nasim says Ontario’s competitive advantage in critical minerals “goes beyond the resources in the ground”.
“We’re proud to support Generation Mining’s investment in Marathon, which will create jobs, strengthen supply chains, and reinforce Ontario’s role as a reliable source of the materials needed by global manufacturers,” Nasim says.
The November 2024 Feasibility Study for Marathon estimated a net present value of US$1.07 billion using a 6% discount rate, an internal rate of return of 28%, and a 1.9-year payback period.
Over the anticipated 13-year mine life, Marathon expects to produce approximately 2.16 million ounces of palladium, 532 million pounds of copper, 488,000 ounces of platinum, 160,000 ounces of gold, and 3.05 million ounces of silver in payable metals.
Generation Mining is focused on advancing the Marathon Copper-Palladium Project in Northwestern Ontario, Canada.
Write to Paula Fabe at Mining.com.au
Main image: Generation Mining
