Canada Infrastructure Bank (CIB) received internal credit approval for a subordinated debt facility of CAD $200 million to support the construction and development of Generation Mining’s marathon copper-palladium project.
The CIB facility is comprised of the following two components: CAD $110 million subordinated debt facility to fund development and construction costs at the marathon project and CAD $90 million subordinated standby facility available to fund any project cost overruns during construction.
The company has now secured approximately CAD $969 million of the funding required to bring the marathon project into production. This amount includes the previously announced internal credit approval for a senior debt facility of US$310 million, or approximately CAD $424 million from Export Development Canada, ING Capital and Société Générale; an existing undrawn metals streaming agreement with Wheaton Precious Metals of CAD $200 million; and equipment leasing facilities totaling approximately CAD $145 million.
“Securing a commitment from the Canada Infrastructure Bank is another major step forward in assembling the full financing package for the marathon project,” Jamie Levy, president and CEO of Generation Mining, said. “The CIB’s mandate to catalyze private-sector investment in critical infrastructure makes it a natural partner for Generation Mining. The commitment further validates the strength of the marathon project’s economics, its strategic importance and its significance as a future North American producer of copper and palladium — two metals essential to the energy transition. With approximately CAD $969 million of project financing now committed, we are firmly on track toward a construction decision.”
The CIB facility remains subject to completion of final documentation, including a comprehensive, well-advanced intercreditor agreement. Final documentation will include customary project finance terms and conditions including satisfaction of a fully funded project construction package.
Endeavour Financial is acting as the financing advisor and A&O Shearman and Cassels as legal advisor to the company for the project financing of the marathon project.
