Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen
Mining” or the “Company”) has finalized an offtake term
sheet with Glencore International AG (“Glencore”) for copper
concentrate, containing copper, palladium, platinum, gold, and
silver, to be produced at Gen Mining’s Marathon Palladium-Copper
Project, located near Marathon, Ontario.
Under the term sheet, Glencore will purchase an average of 50%
of the total copper concentrate to be produced from the Marathon
Palladium-Copper Project. It is expected that production from the
Marathon Project will be treated by Glencore’s Horne smelter in
Quebec, Canada. The term sheet includes anticipated specifications
for the polymetallic copper concentrate expected to be produced at
the Marathon Project, treatment and refining charges, and
applicable penalties, if any, for deleterious elements.
Metallurgical testwork has indicated that the concentrate is
unlikely to incur any penalties. The term sheet remains subject to
final documentation, including customary offtake terms and
conditions.
This offtake term sheet also provides additional benefits for
Gen Mining, including attractive metal payment terms, credit
support from Glencore for the Project’s environmental reclamation
financial surety requirements, and working capital facilities.
Gen Mining has also finalized an offtake term sheet with a
European integrated copper group which will purchase the balance of
the concentrate produced by the Marathon Project, and such offtake
agreement will underpin the provision of certain loan guarantees in
support of the construction financing for the Marathon Project, all
of which remains subject to final documentation and the requisite
approvals.
Commenting on these arrangements Jamie Levy, President and CEO
said, “We are pleased to have Glencore as an offtake partner as we
advance the Marathon Palladium Copper Project to construction and
production. These offtake arrangements will ensure the Marathon
Project has customers for its production and will enable downstream
processing of critical minerals in Canada. Moreover, this provides
a strong commercial commitment from a highly regarded counterparty
to support our expected project financing requirements. This
represents just one more major milestone in the development of the
Marathon Project, with more to come.”
The Company expects to enter into final, binding offtake
agreements for 100% of the production in conjunction with the
completion of its project financing, anticipated later this
year.
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 Project 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 kilometers. Gen Mining
owns a 100% interest in the Marathon Project and once constructed,
it is expected to have a low carbon footprint. For more
information, please review the detailed Feasibility Study dated
March 25, 2021, filed under the Company’s profile at SEDAR.com.
About Glencore
Glencore is one of the world’s largest global diversified
natural resource companies and a major producer and marketer of
more than 60 responsibly sourced commodities that advance everyday
life. Through a network of assets, customers and suppliers that
spans the globe, Glencore produces, processes, recycles, sources,
markets, and distributes the commodities that enable
decarbonization while meeting the energy needs of today.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, battery manufacturing and
oil sectors. They also provide financing, logistics and other
services to producers and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. They are an active participant in the Extractive
Industries Transparency Initiative.
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 certain actions, events or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved,
including statements related to the anticipated terms of copper
concentrate sales, and related loan guarantees, credit support and
working capital facilities. 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 the timing for a construction decision;
the progress of development at the Marathon Project, including
progress of project expenditures and contracting processes, the
Company's plans and expectations with respect to liquidity
management, continued availability of capital and financing, the
future price of palladium and other commodities, permitting
timelines, exchange rates and currency fluctuations, increases in
costs, requirements for additional capital, and the Company's
decisions with respect to capital allocation, and the impact of
COVID-19, inflation, global supply chain disruptions and the war in
Ukraine on the Company, the project schedule for the Marathon
Project, key inputs, staffing and contractors, commodity price
volatility, continued availability of capital and financing,
uncertainties involved in interpreting geological data,
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,
2021, 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; results 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 other
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230327005266/en/
Jamie Levy President and Chief Executive Officer (416) 640-2934
(O) (416) 567-2440 (M) jlevy@genmining.com
Ann Wilkinson Vice President, Investor Relations (416) 640-2954
(O) (416) 357-5511 (M) awilkinson@genmining.com
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