Generation Mining has closed a bought-deal public offering and concurrent private placement generating combined gross proceeds of $240 million to advance its 100%-owned Marathon Copper-Palladium Project in northwestern Ontario.
The public offering consisted of 312.5 million common shares priced at $0.64 each, generating $200 million in gross proceeds.
A concurrent private placement with Canada Growth Fund added another $40 million through the sale of 62.5 million shares at the same price.
Canada Growth Fund separately acquired 76.45 million shares through the public offering for approximately $49 million.
Following both transactions, CGF controls approximately 138.95 million Generation Mining shares, representing about 19.9% of the company’s outstanding common shares on a non-diluted basis.
Generation plans to use the net proceeds to fund development, construction and operation of the Marathon Project along with associated financing, corporate and administrative costs.
BMO Capital Markets served as lead underwriter and sole bookrunner for the bought deal.
The underwriting syndicate also included TD Securities, Haywood Securities, Jett Capital Advisors, Stifel Canada, ING Bank, Velocity Trade Capital and Ventum Financial.
Generation also entered into an investor rights agreement with Canada Growth Fund.
The agreement gives CGF certain board nomination and observer rights as well as registration, pre-emptive and top-up rights, subject to ownership thresholds.
Separately, Generation signed an offtake agreement with Glencore covering polymetallic copper concentrate produced at Marathon.
The concentrate will contain copper, palladium, platinum, gold and silver and is expected to support Canadian processing through Glencore’s Horne smelter in Rouyn-Noranda, Québec, and its CCR refinery.
Generation Mining’s November 2024 feasibility study estimated the Marathon Project at a $1.07 billion net present value using a 6% discount rate, with a 28% internal rate of return and 1.9-year payback based on the metal-price assumptions used in the study.
Across an anticipated 13-year mine life, the project is expected 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, based on the company’s feasibility study.