Generation Mining Announces Closing of $240 Million Stream with Wheaton Precious Metals and Receipt of Initial $20 Million Deposit
Generation Mining Announces Closing of
$240 Million Stream with Wheaton
Precious Metals and Receipt of Initial $20
Million Deposit
Toronto, Ontario – March 31, 2022 – 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 first C$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 C$240
million in return for a stream on all gold production and 22% of the platinum production from
the Marathon Project. Subject to the fulfillment of certain conditions precedent, the Company
expects Gen PGM to receive the second C$20 million tranche later this year, on or before the end
of the third quarter. During construction of the Marathon Project the remaining C$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
release dated December 22, 2021.
Jamie Levy, the President and CEO commented “ This represents a significant funding milestone
towards the construction of the Marathon Project, one of North America’s largest undeveloped
critical mineral deposits. We are excited to be in a position to continue advancing the Marathon
Project with this non -dilutive cash infusion, and to have gained the confidence and financial
support of Wheaton’s highly skilled management, technical and investment teams.”
As detailed in the Marathon Feasibility Study released on March 4, 2021, over a 13-year mine life
the Marathon Project is estimated to produce 1,905,000 ounces of palladium, 467 million lbs of
copper, 537,000 ounces of platinum, 151,000 ounces of gold and 2,823,000 ounces of silver.
Endeavour Financial is acting as financial advisor and Cassels as legal advisor to Generation
Mining for the PMPA.
Qualified Person
The scientific and technical content of this news release was reviewed, verified, and approved by
Drew Anwyll, P.Eng., M.Eng, Chief Operating Officer of the Company, and a Qualified Person
as defined by Canadian Securities Administrators National Instrument 43 -101 - Standards of
Disclosure for Mineral Projects.
About the Company
Gen Mining’s focus is the development of its 100%-owned 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.
The Feasibility Study in respect of the Marathon Project estimated that at US$1725/oz palladium,
and US$3.20/lb copper, M arathon’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%. Up front 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 equivalent ounces
per year over a 13-year mine life at an All-In Sustaining Cost of US$809 per palladium-equivalent
ounce. For more information, please review the detailed Feas ibility Study dated March 25, 2021,
filed under the Company’s profile at www.sedar.com.
For further information please contact:
Jamie Levy
President and Chief Executive Officer
(416) 640-2934
(416) 567-2440
Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements,
as defined in applicable securities laws (collectively referred to herein as "forward -looking
statements"). Forward-looking statements reflect current expectations or beliefs regarding future
events or the Company’s future performance. All statements other than statements of historical
fact are forward -looking statements. Often, but not always, forward -looking statements can be
identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "continues", "forecasts", "Projects", "predicts", "intends", "anticipates", "targets" or
"believes", or variations of, or the negatives of, such words and phrases or state that certa in
actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or
be achieved, including statements relating to funding pursuant to the PMPA, satisfaction of the
conditions precedent under the PMPA, or advancing the Mara thon Project to bring it into
production. All forward-looking statements, including those herein are qualified by this cautionary
statement.
Although the Company believes that the expectations expressed in such statements are based on
reasonable assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the statements. There are certain
factors that could cause actual results to differ materially from those in the forward -looking
information. These include commodity price volatility, continued availability of capital and
financing, uncertainties involved in interpreting geological data, increases in costs, environmental
compliance and changes in environmental legislation and regulation, the Company’s relationships
with First Nations communities, exploration successes, and general economic, market or business
conditions, as well as those risk factors set out in the Company’s annual information form for the
year ended December 31, 2020, and in the continuous disclosure documents filed by the Company
on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not
exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should
not place undue reliance on forward -looking statements. The forward -looking statements in this
news release speak only as of the date of this news release or as of the date or dates specified in
such statements.
Forward-looking statements are based on a number of assumptions which may prove to be
incorrect, including, but not limited to, assumptions relating to: the availability of financing for
the Company’s operations; operating and capital costs; re sults of operations; the mine
development and production schedule and related costs; the supply and demand for, and the level
and volatility of commodity prices; timing of the receipt of regulatory and governmental approvals
for development projects and ot her operations; the accuracy of Mineral Reserve and Mineral
Resource Estimates, production estimates and capital and operating cost estimates; and general
business and economic conditions.
Investors are cautioned that any such statements are not guarantees of future performance and
actual results or developments may differ materially from those projected in the forward -looking
information. For more information on the Company, investors are encouraged to review the
Company’s public filings on SEDAR at www.sedar.com. The Company disclaims any intention or
obligation to update or revise any forward - looking information, whether as a result of new
information, future events or otherwise, other than as required by law.