Generation Mining Provides Update On Marathon Project Financing Discussions

TORONTO, June 08, 2022 (GLOBE NEWSWIRE) -- Generation Mining Limited (“GenMining” or the “Company”) (TSX:GENM OTCQB:GENMF) is pleased to provide an update on the project financing of the Marathon Project. In August 2021, the Company appointed Endeavour Financial as its Financial Advisor to provide financial advisory services with respect to the development of its 100% owned Marathon Palladium Copper project in northwestern Ontario. The Endeavour engagement was split into two phases.

Phase I of the project financing consisted of a competitive process to access sources of low-cost long-term funding, whereby the most attractive financing proposal was the Cdn$240 million precious metal stream with Wheaton Precious Metals, entered into effective January 26, 2022, and from which the first $20 million was received by Generation PGM Inc., GenMining’s whollyowned subsidiary on March 31, 2022.

Phase II involves the access to medium term financing with the initial stage being a request for proposal process (“RFP”) for the balance of the project financing. The RFP process has resulted in strong initial non-binding expressions of interest from more than a dozen lenders including commercial bank lenders, export credit financiers, private equity companies, potential offtake partners and equipment lessors. The interest has been significant with the total potential committed capital being well in excess of US$1 billion among several interested parties. The Company will now analyze the proposals, advance diligence and definitive documentation with a select group of lenders. The Company continues to focus on maximizing capital from non-equity sources while minimizing the cost of capital and maximizing equity returns. Endeavour estimates that the project can carry approximately US$400 million in senior debt based on the Company’s Feasibility Study dated March 3, 2021.

The Company is also pleased to report that Export Development Canada (EDC) has provided an expression of interest to support the project, subject to the successful completion of its due diligence process. EDC has indicated the ability to provide potential project financing of up to US$200 million. EDC is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. The Marathon Project contains reserves of 2,342 million oz Pd, 532 million lbs Cu, and 756 million oz Pt which are listed as minerals considered critical for the sustainable economic success of Canada and its allies and to position Canada as the leading mining nation, as set out in the Canadian Minerals and Metals Plan