Marathon Copper-Palladium Project Receives Up to C$11 Million Loan Support from Ontario

en.Wedoany.com Reported - On September 18, Generation Mining signed a non-binding financing term sheet with the Government of Ontario, Canada for the Marathon Copper-Palladium Project. Ontario plans to provide a loan of up to C$11 million to the project through the Critical Minerals Processing Fund to support the construction of processing facilities. The loan amount will be determined based on the proportion of eligible project expenditures and the minimum employment level of the project, and formal financing documents still need to be completed.

The Marathon Project is located near the town of Marathon in northwestern Ontario and is 100% owned by Generation Mining. The project's total capital cost is C$992 million, of which the processing facilities and other infrastructure investments eligible for financing account for approximately C$410 million. This provincial loan will mainly correspond to this processing facility construction portion.

The project has obtained the key permits required for construction. The Ontario Ministry of the Environment, Conservation and Parks previously approved the project's environmental assessment, and Generation Mining obtained environmental compliance approval for industrial sewage works during the construction phase in May 2025, completing the project's key construction permitting process. The project is planned to include an open-pit mine and supporting processing facilities, with a mine life of approximately 13 years.

Generation Mining announced its complete construction financing plan on September 14, adding C$340 million in new funding, including a C$200 million bought deal offering, a C$40 million private placement by Canada Growth Fund, and C$100 million in subordinated unsecured convertible notes. The project had previously also obtained approval for US$310 million in senior secured project financing, C$200 million in subordinated debt commitments, C$200 million in metal stream financing, and approximately C$145 million in equipment leasing arrangements.

On September 21, Generation Mining completed C$240 million in equity financing, of which C$200 million was raised through a public offering, while Canada Growth Fund completed a C$40 million private placement in parallel. The relevant funds will be used for the development, construction, and operation of the Marathon Project, as well as related management and financing costs.

According to the updated feasibility study in 2025, the Marathon Project is expected to produce an average annual payable output of 42 million pounds of copper, 168,000 ounces of palladium, 38,000 ounces of platinum, 12,000 ounces of gold, and 240,000 ounces of silver. Over the full mine life, it is expected to produce approximately 532 million pounds of copper, 2.161 million ounces of palladium, 488,000 ounces of platinum, 160,000 ounces of gold, and 3.051 million ounces of silver.

Generation Mining has appointed Ausenco as the EPCM partner. As of August, bids had been received for major equipment and construction packages accounting for approximately 30% of the project's estimated capital cost. The company plans to commence early works in the fourth quarter of 2026.