Generation Mining, the developers of a proposed open-pit mine near Marathon, has secured an international mining company to be the buyer of its copper concentrate.
An offtake term sheet has been finalized with Glencore International AG.
According to the term sheet, Glencore will purchase an average of 50 per cent of the future mine’s total copper concentrate. The polymetallic copper concentrate also contains palladium, platinum, gold, and silver.
The concentrate from Marathon will head to Glencore’s Horne smelter in Rouyn-Noranda, Que. for further processing.
Without specifying the amount, Gen Mining said in a news release that the term sheet provides attractive metal payment terms for the company and credit support from Glencore for the mine’s environmental reclamation fund requirements and for working capital.
Gen Mining has been raising financing for the $665-million project, which could start construction this spring.
Mine construction could create as many as 1,000 jobs with more permanent employment for 400 when the pit goes into commercial production.
After a 20 to 24-month build, mining operations could start in 2025.
The deposit is 10 kilometres north of the town of Marathon. The initial projected mine life is 13 years but exploration continues on the company’s large 22,000-hectare property near the north shore of Lake Superior.
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Gen Mining further reports it’s finalized another offtake term sheet with an undisclosed “European integrated copper group” to purchase the balance of the concentrate produced from Marathon. The agreement offers the provision of loan guarantees to support mine construction, but that is subject to final documentation and certain approvals, the company said.
In a statement, Gen Mining President-CEO Jamie Levy is a pleased to have Glencore aboard as a customer.
“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.”
More offtake agreements are expected to be signed later this year for all of the production from Marathon. These agreements help raise financing for mine construction.
Last November, Gen Mining reached an impact benefits agreement with Biigtigong Nishnaabeg (Pic River) enabling the nearby community to receive guarantees that the company will safeguard the environment while offering training, employment and business spinoff opportunities.