Generation Mining (TSX: GENM, US-OTC: GENMF) shares nearly hit a two-year high Friday as it spotlighted Ontario government support for its $990-million capex Marathon copper-palladium project.
Located 300 km east of Thunder Bay, Marathon represents Canada’s next shovel-ready critical minerals project after receiving its final construction permit last month. It would be one of North America’s few palladium producers and a key source of copper. A metals streaming agreement with Wheaton Precious Metals (TSX: WPM) is to provide $200 million in financing.
On Friday, several Ontario government ministers issued an open letter to Canada’s Minister of Energy and Natural Resources, Tim Hodgson, seeking federal support for what would be a minerals project “critical to building a secure, domestic supply chain.”
Shares in Generation Mining closed 18% higher on Friday at 42¢ apiece, its highest since September 2023. The company’s market capitalization is estimated at $99.2 million.
Billion-dollar NPV
Shortly after the permitting milestone, Generation received a letter from an unnamed Canadian financial institution stating its interest in lending up to $200 million for the Marathon project’s construction.
According to a feasibility study released in March, Marathon is expected to produce 168,000 oz. of palladium and 42 million lb. of copper, plus 38,000 oz. of platinum, 12,000 oz. of gold and 240,000 oz. of silver on an annual basis over a 13-year span.
Based on the improved output projections over prior studies, the project would have an after-tax net present value of more than $1 billion, an internal rate of return of 28% and a 1.9-year payback period, the report showed.
“Now that we are fully permitted for construction, the last hurdle is bringing together the necessary funding to build our mine and commence production,” Generation Mining CEO Jamie Levy stated in Friday’s news release.
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