Generation Mining (GENM.TO) Wednesday said that Export Development Canada (EDC), ING Capital LLC, and Societe Generale S.A., collectively the Mandated Lead Arrangers (MLAs), have each received internal credit approval for a senior secured project finance facility for US$310 million, or approximately C$424 million to fund the construction and development of the Marathon Copper-Palladium Project, located on the north shore of Lake Superior in Northwestern Ontario, Canada.
With the senior facility, an existing undrawn metals streaming agreement with Wheaton Precious Metals (WPM.TO) of C$200 million, and equipment leasing facilities totaling approximately C$145 million, Generation Mining has secured approximately C$769 million of the funding required to bring the Marathon Project into production, stated the company.
"The receipt of credit approval from the MLAs represents a critical milestone in the project financing process and reflects the lenders' confidence in the Marathon Project's economics, permitting status, and strategic importance as a North American critical mineral's producer," said the company.
The senior facility is subject to final documentation including export credit agencies and a comprehensive intercreditor agreement, said the company and added that final documentation will include customary project finance terms and conditions including satisfaction of a fully funded project construction package.
"Receiving credit approvals from EDC, ING, and Societe Generale is a landmark moment for Generation Mining and a powerful endorsement of the Marathon Project," said Jamie Levy, the chief executive.
Levy also noted that, in the course of negotiations with the MLAs and prospective subordinate debt and equity investors, the company determined that a portion of the previously announced senior debt commitment could be replaced with alternative sources of capital elsewhere in the capital structure, allowing the senior facility to be "optimally sized."