Generation Mining secures funding for Canada’s next critical minerals mine

Generation Mining Ltd. [GENM-TSX, GENMF-OTCQB] said it has secured $340 million, representing the final funding and financing component required to complete the fully financed construction package for its 100%-owned Marathon copper-palladium project in northwestern Ontario.

The package includes anchor investments of approximately $140 million from Canada Growth Fund (CGF) and $50 million from Canada Infrastructure Bank (CIB).  With the final funding now in place, together with the previously announced senior secured debt, subordinated debt, undrawn portion of the metal stream, and estimated equipment leasing, Generation has arranged the financing required for construction of the Marathon project.

Highlights from the final funding include a $200 million bought deal financing, of which $100 million was committed by CGF, Wheaton Precious Metals Corp. (WPM-TSX, WPM-NYSE), and Glencore Canada Corp. Under the terms of the bought deal, the underwriters have pledged to purchase 312.5 million common shares priced at 64 cents per share. The bought deal is expected to close by September 21, 2026.

Other highlights include a private placement of $40 million (62.5 million common shares priced at 64 cents) by CGF and a $100 million subordinated unsecured convertible note of $100 million. The allocations include $50 million by CGF and $50 million by CIB. In addition to the final funding, the company and Glencore AG have agreed to terms related to a copper and metal supply contract (offtake agreement). Under the deal, Glencore has pledged to purchase polymetallic copper concentrate containing copper, palladium, platinum, gold and silver produced at Marathon. The concentrate will support domestic value-added processing at Glencore’s Horne smelter at Rouyn-Noranda, Quebec as well as Glencore Canada’s CCR refinery and further domestic value-added processing.

Taken together, the final funding and previously announced financings, announced in June 2026, and March 2026, represents a fully financed construction package of approximately $1.3 billion. The board is expected to convene to make the final investment decision, following the completion of all financings comprising the final funding.

Generation Mining shares were active on the news, easing 7.04% or $0.05 to 66 cents. The shares trade in a 52-week range of 92 cents and 34.5 cents.

The Marathon Project is expected to produce 2.16 million ounces of palladium, 532 million pounds of copper, 488,000 ounces of platinum and 160,000 ounces of gold and 3.05 million ounces of silver in payable metal.

Marathon hosts a large platinum group metal mineral resource. The project is located about 215 kilometres east of Thunder Bay and eight kilometres north of Marathon, in northwestern Ontario. The property covers a land package of 220 square kilometres.

The company released an updated feasibility study in March, 2025. It said the study outlines an open pit operation and process plant over a mine life of 12.5 years and replaces the previous feasibility study dated May 31, 2024.