Generation Mining executed a mandate letter to arrange a senior secured project finance facility of up to $400 million to fund the construction and development of its Marathon Palladium-Copper Project, located on the north shore of Lake Superior in Ontario, Canada.
A syndicate including Export Development Canada (EDC), together with ING Capital and Société Générale will act as the mandated lead arrangers for the facility. The formal mandate includes a non-binding indicative term sheet for a senior debt facility of up to $400 million.
Closing of the facility, targeted for Q3/23, remains subject to completion of final due diligence in form and substance satisfactory to the mandated lead arrangers, final credit approvals and execution of definitive facility documentation, which will include customary project finance terms and conditions, as well as an intercreditor agreement. Drawdowns under the facility would be subject to customary conditions precedent.
“We are very pleased to have mandated these three financial institutions, all of whom have a strong mining and metals track record,” Jamie Levy, president and CEO of Generation Mining, said. “The $400 million senior debt facility combined with the undrawn Wheaton Precious Metals Stream of CAD$200 million ($146.7 million), or a total of CAD$740 million ($542.9 million) represents a significant portion of the initial capital required to develop the Marathon Project. The company will now focus on finalizing the definitive documentation, together with arranging equipment leases and sourcing the balance of the capital required to fully finance construction.
“The interest of EDC, ING, Societe Generale and Wheaton Precious Metals further validates the Marathon Project’s status as an economic, sustainable, environmentally sensitive, low-cost producer of critical metals that are needed to support emissions controls and the transition to a greener economy. This has never been more urgent particularly in the wake of the IPCC Report, published March 20, 2023, by the UN Intergovernmental Panel on Climate Change, which provides governments, at all levels, with scientific information they can use to develop climate policies. We look forward to updating the market throughout the rest of this year on our progress.”
Endeavour Financial is acting as financial advisor to Generation Mining, while Shearman & Sterling and Cassels Brock & Blackwell are acting as legal counsel to the company.
