Generation Mining Ltd.’s joint venture partner in the Marathon palladium-copper project, Sibanye-Stillwater, has elected not to exercise its ownership increase right to expand its ownership in the project to 51%.
As a result, Generation Mining will retain effective ownership of the Marathon Project and intends to advance the project expeditiously on the remaining key undertakings to bring the project into production, including the environmental assessment and permitting, final negotiations with First Nations, detailed engineering, and project financing.
In the coming months, Generation Mining will continue to advance the project financing alternatives (including potential non-dilutive funding options). The company said it continues to be well financed to progress the Marathon Project with approximately $12 million cash on hand.
“We are thrilled to have clarity on this key issue, which removes a perceived encumbrance on the Marathon Project,” Generation Mining President and CEO Jamie Levy said.
The feasibility study estimated that at $1,725/oz palladium, and $3.20/lb copper, Marathon’s net present value (at 6% discount rate) is approximately C$1.07 billion with a payback of 2.3 years and an internal rate of return of 30%. Up front capital costs were estimated at C$665 million. The mine would produce an estimated 245,000 palladium equivalent ounces per year over a 13-year mine life at an all-in sustaining cost of $809 per palladium-equivalent ounce.