Generation Announces Funding from the Canadian Government

Rhea-AI Summary

Generation Mining (TSX:GENM, OTCQB: GENMF) has announced that its subsidiary, Generation PGM Inc., has been awarded up to $771,000 from the Critical Minerals Infrastructure Fund (CMIF), pending final due diligence. This funding will be used to advance transportation infrastructure for the Marathon Copper-Palladium Project in Ontario.

The company plans to complete engineering and design work and feasibility studies for road and rail links to support the movement of copper concentrates from the project to smelters in Canada and Europe. Specific plans include upgrading a 5-kilometre site access road, developing a new 4-kilometre access road, and creating a transload facility for concentrate transfer.

With all federal approvals obtained and only three outstanding provincial permits expected by year-end, the company aims to support construction activities in 2025.

Positive

• Awarded up to $771,000 from the Critical Minerals Infrastructure Fund
• All federal approvals for construction obtained
• Only 3 outstanding provincial permits expected by year-end
• Plans to upgrade and develop new access roads and a transload facility

Negative

• None.

TORONTO--(BUSINESS WIRE)-- Generation Mining Limited (TSX:GENM, OTCQB: GENMF) (“Gen Mining” or the “Company”) is pleased to announce that Generation PGM Inc., its wholly-owned subsidiary developing the Marathon Copper-Palladium Project, has been awarded up to $771,000 from the Critical Minerals Infrastructure Fund (CMIF) pending final due diligence. The CMIF is a key program under the Canadian Critical Minerals Strategy to address infrastructure gaps, enable critical minerals production and connect resources to markets through various clean energy, electrification and transportation infrastructure projects.

Jamie Levy, President and CEO says, “Our Marathon Copper-Palladium Project is one of the most advanced projects in Canada. Support from the Government of Canada’s Critical Minerals Infrastructure Fund will be used to advance work on transportation infrastructure while we continue to work towards securing construction financing. With all federal approvals for construction having been obtained, and only 3 outstanding provincial permits expected to be granted by year-end, the work undertaken with this funding could support construction activities in 2025.”

Generation PGM Inc. is planning to complete engineering and design work and feasibility studies for road and rail links to support the movement of copper concentrates from their mining project located near Marathon, Ontario to smelters in Canada and Europe. As part of this work, we intend to upgrade the 5-kilometre site access road, and develop a new 4-kilometre access road and a transload facility to transfer concentrates.

About Generation Mining Limited

Gen Mining’s focus is the development of the Marathon Project, a large undeveloped copper-palladium deposit in Northwestern Ontario, Canada. On May 31, 2024, the Company filed an Amended Feasibility Study Update for the Marathon Project with an effective date of December 31, 2022 (the “Feasibility Study”).

The Feasibility Study estimates a Net Present Value (using a 6% discount rate) of C$1.16 billion, an Internal Rate of Return of 25.8%, and a 2.3-year payback. The mine is expected to produce an average of 166,000 ounces of payable palladium and 41 million pounds of payable copper per year over a 13-year mine life (“LOM”). Over the LOM, the Marathon Project is anticipated to produce 2,122,000 ounces of palladium, 517 million lbs of copper, 485,000 ounces of platinum, 158,000 ounces of gold and 3,156,000 ounces of silver in payable metals. For more information, please review the Feasibility Study filed under the Company’s profile at www.sedarplus.ca or on the Company’s website at https://genmining.com/projects/feasibility-study/.

The Marathon Property covers a land package of approximately 26,000 hectares, or 260 square kilometres. Gen Mining owns a 100% interest in the Marathon Project.

Qualified Person

The scientific and technical content of this news release was reviewed, verified, and approved by Drew Anwyll, P.Eng., M.Eng, Chief Operating Officer of the Company, and a Qualified Person as defined by Canadian Securities Administrators’ National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Forward-Looking Information

This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved, including statements related to the anticipated maximum CMIF funding amount, life of mine; mineral production estimates, payback period, and financial returns from the Marathon Project.

Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. In particular, there can be no assurance that the life of mine; mineral production estimates, payback period, and financial returns from the Marathon Project will achieve the anticipated results described herein. There are other factors that could also cause actual results to differ materially from those in the forward-looking information. These include the timing for a construction decision; the progress of development at the Marathon Project, including progress of project expenditures and contracting processes, the Company’s plans and expectations with respect to liquidity management, continued availability of capital and financing, the future prices of palladium, copper and other commodities, permitting timelines, exchange rates and currency fluctuations, increases in costs, requirements for additional capital, and the Company’s decisions with respect to capital allocation, and the impact of COVID-19, inflation, global supply chain disruptions, global conflicts, including the wars in Ukraine and Israel, the project schedule for the Marathon Project, key inputs, staffing and contractors, continued availability of capital and financing, uncertainties involved in interpreting geological data and the accuracy of mineral reserve and resource estimates, environmental compliance and changes in environmental legislation and regulation, the Company’s relationships with Indigenous communities, results from planned exploration and drilling activities, local access conditions for drilling, and general economic, market or business conditions, as well as those risk factors set out in the Company’s annual information form for the year ended December 31, 2023, and in the continuous disclosure documents filed by the Company on SEDAR+ at www.sedarplus.ca.

Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law. For more information on the Company, investors are encouraged to review the Company’s public filings on SEDAR+ at www.sedarplus.ca.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241007854559/en/

Jamie Levy

President and Chief Executive Officer

(416) 640-2934 (O)

(416) 567-2440 (M)

jlevy@genmining.com

Source: Generation Mining Limited

FAQ

What funding did Generation Mining (GENMF) receive for its Marathon Copper-Palladium Project?

Generation Mining's subsidiary, Generation PGM Inc., has been awarded up to $771,000 from the Critical Minerals Infrastructure Fund (CMIF), pending final due diligence, for its Marathon Copper-Palladium Project.

How will Generation Mining (GENMF) use the CMIF funding for the Marathon Project?

The funding will be used to advance transportation infrastructure, including engineering and design work, and feasibility studies for road and rail links to support the movement of copper concentrates from the project to smelters in Canada and Europe.

What specific infrastructure improvements does Generation Mining (GENMF) plan for the Marathon Project?

Generation Mining plans to upgrade a 5-kilometre site access road, develop a new 4-kilometre access road, and create a transload facility for transferring concentrates.

When does Generation Mining (GENMF) expect to start construction activities for the Marathon Project?

With all federal approvals obtained and only three outstanding provincial permits expected by year-end, Generation Mining aims to support construction activities in 2025.