Generation Mining Ltd. said it has finalized an offtake term sheet with Glencore International AG 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 project. It is expected that the concentrate 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 test work 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.
“We are pleased to have Glencore as an offtake partner as we advance the Marathon Project to construction and production,” Jamie Levy, president and CEO of Gen Mining said. “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 final, binding offtake agreements for all of the production in conjunction with the completion of its project financing, anticipated later this year.