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Generation Mining Reaches Another Milestone with Receipt of Second $20 Million from Wheaton Precious Metals
TORONTO / Sep 08, 2022 / Business Wire / Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining” or the “Company”) is pleased to announce that it has
About this update from Generation Mining Ltd.
[{"type":"text","content":"TORONTO / Sep 08, 2022 / Business Wire / Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining” or the “Company”) is pleased to announce that it has received, through its wholly-owned subsidiary Generation PGM Inc. (“Gen PGM”), the second CAD$20 million payment from the previously announced Precious Metal Purchase Agreement (the “PMPA”) with Wheaton Precious Metals Corp. (“Wheaton”) in respect to the Marathon Palladium Copper project in Northwestern Ontario (the “Marathon Project”). Under the terms of the PMPA, Wheaton will pay Gen PGM total cash consideration of CAD$240 million in return for a stream on all gold production and 22% of the platinum production from the Marathon Project. The first CAD$20 million was received March 31, 2022. During construction of the Marathon Project the remaining CAD$200 million will be payable in four staged installments which are also subject to various customary conditions precedent being satisfied. Further details are contained in the Gen Mining news releases dated December 22, 2021 and March 31, 2022. Jamie Levy, the President and CEO commented “On our path towards the permitting and construction of the Marathon Project, one of North America’s largest undeveloped critical mineral deposits, this represents a significant funding milestone. We are pleased and gratified to have gained the confidence and financial support of Wheaton’s highly skilled management, technical and investment teams.” About the Company Gen Mining’s focus is the development of the Marathon Project, a large undeveloped palladium-copper deposit in Northwestern Ontario. The Company released the results of the Feasibility Study on March 3, 2021 and published the NI43-101 Technical Report dated March 25, 2021. The Marathon Property covers a land package of approximately 22,000 hectares, or 220 square kilometres. Gen Mining owns a 100% interest in the Marathon Project. The Feasibility Study in respect of the Marathon Project estimated that at US$1,725/oz palladium, and US$3.20/lb copper, Marathon’s Net Present Value (at 6% discount rate) is approximately C$1.07 billion with a payback of 2.3 years and an Internal Rate of Return of 30%. Upfront capital costs were estimated at C$665 million, net of equipment financing and pre-completion operating costs and revenues. The mine would produce an estimated 245,000 palladium ...