Generation Mining Provides Update On Marathon Project Financing Discussions

Generation Mining Limited is pleased to provide an update on the project financing of the Marathon Project. In August 2021, the Company appointed Endeavour Financial as its Financial Advisor to provide financial advisory services with respect to the development of its 100% owned Marathon Palladium Copper project in northwestern Ontario. The Endeavour engagement was split into two phases.

Phase I of the project financing consisted of a competitive process to access sources of low-cost long-term funding, whereby the most attractive financing proposal was the Cdn$240 million precious metal stream with Wheaton Precious Metals, entered into effective January 26, 2022, and from which the first $20 million was received by Generation PGM Inc., GenMining’s wholly owned subsidiary on March 31, 2022.

Phase II involves the access to medium term financing with the initial stage being a request for proposal process (“RFP”) for the balance of the project financing. The RFP process has resulted in strong initial non-binding expressions of interest from more than a dozen lenders including commercial bank lenders, export credit financiers, private equity companies, potential offtake partners and equipment lessors. The interest has been significant with the total potential committed capital being well in excess of US$1 billion among several interested parties. The Company will now analyze the proposals, advance diligence and definitive documentation with a select group of lenders. The Company continues to focus on maximizing capital from non-equity sources while minimizing the cost of capital and maximizing equity returns. Endeavour estimates that the project can carry approximately US$400 million in senior debt based on the Company’s Feasibility Study dated March 3, 2021.

The Company is also pleased to report that Export Development Canada (EDC) has provided an expression of interest to support the project, subject to the successful completion of its due diligence process. EDC has indicated the ability to provide potential project financing of up to US$200 million. EDC is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. The Marathon Project contains reserves of 2,342 million oz Pd, 532 million lbs Cu, and 756 million oz Pt which are listed as minerals considered critical for the sustainable economic success of Canada and its allies and to position Canada as the leading mining nation, as set out in the Canadian Minerals and Metals Plan

The project finance process is expected to take several months and is being run in parallel with the Environmental Assessment and permitting approvals.

“Our first significant funding milestone towards the construction of the Marathon Project was taken earlier in 2022 with our Precious Metal Purchase Agreement with Wheaton Precious Metals Corp.”, said Jamie Levy, President and CEO of GenMining. “This allows us to advance the Marathon Project, one of North America’s largest undeveloped critical mineral deposits, with a non-dilutive cash infusion. Having gained the confidence of Wheaton’s highly skilled management, technical and investment teams provide us with the financial support to engage with the debt finance markets. Sourcing the remaining key components of the project financing continues, and we are pleased and gratified to see such strong initial interest which we take as confirmation of the robustness of the project.

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