Mining News

Generation Mining clinches C$240m stream with Wheaton for Marathon construction

Share on facebook
Share on twitter
Share on linkedin
Share on email

Two weeks after it announced it would be upping its interest in the Marathon palladium-copper project in northern Ontario to 100%, Generation Mining (TSX: GENM) has landed a C$240 million streaming deal with Wheaton Precious Metals (TSX:WPM).

The streaming deal for gold and platinum will see Generation receive C$40 million early next year, with the rest paid in four instalments during construction, subject to certain milestones. Closing of the financing agreement is subject to Generation finalizing its 100% ownership in the project.

Earlier this month, the company announced it would acquire Sibanye-Stillwater’s (JSE: SSW) 16.5% interest by issuing 21.8 million common shares. When the transaction is completed, the South Africa-based precious metals miner will hold 19.1% of Generation’s shares.

“Entering into this agreement with the world’s largest precious metals streaming company validates the potential economics of the Marathon project and is a significant milestone for the company and our shareholders,” said Jamie Levy, Generation Mining’s president and CEO in a release.

“This stream represents a key cornerstone financing commitment for the ultimate project financing package. Working closely with our financial advisors, Endeavour Financial, we will now focus on sourcing the remaining key financial components of the project financing including project debt, offtake agreements and equipment financing.”

Under the agreement, Wheaton will buy 100% of payable gold production until it receives 150,000 oz., after which it will buy 67% of gold production for the remainder of the mine life. It will also buy 22% of platinum production, dropping to 15% after the first 120,000 oz. have been delivered. It will pay 18% of spot price for the metals until payments equal the upfront C$240 million outlay. After that, Wheaton will pay 22% of spot prices.

Wheaton also recently acquired New Gold’s (TSX: NGD) stream ) swidget-container"> scaidget-container"> lcctainer"> 5inancing including project debt, offtake agreements and equi,BC-contaih3>ders,” fr t data-eavasdong>aineAlderll -rep fr t data-ecluudyecente fThe 13-rtai tor-mpitthe fiating (TSX: Gd Ne8 millicettiC$665n also rethaveilnt CTnancing.fftake for-tax toathonpack t;,&q (Ne8a 6% discsuirememe)LevyngndeavdiatiC$1.1 balso rethe ra 29.7pleted,ny ememetrearetueam paya 2.3-rtai NGmenu ed iod-containeLst -of role67% of gon will c "> mpancludiibandely">Sgold < gton Pre6ge1.5etheles t fCO2yablevntortDed ethele t fanded ablevntortDet wilpd-containe(rojec elemen metals jg pis :hidd elementor-sf kea-element">e/ieLskece4aa71"elementor-widget-container">

Mining News

elementor-share-buttons--view-icon elementor-share-buttons--shape-rounde611098e-buttons" data-id="99943fccenter elementor-share-buttons--skin-flat elementor-grid-0 elementor-shareget elementor-widgetelementor-share-buttoelementor-widgeelementor-sharor-eleme-buttons--color-officia-share-buttons" data-id="99943fc" data-element_type="widget" data-widget_type="share-buttons.default"> 611098eclass="elementor-widget-container">
Share on facebook
Share on twitter
Share on linkedin
Share on email