Generation Mining Secures Full Project Financing to Build Canada's Next Critical Minerals Mine

Generation Mining Limited (GENM) announced on September 14, 2026, that it has secured the final $340 million needed to complete an approximately $1.3 billion construction financing package for its 100%-owned Marathon Copper-Palladium Project in Northwestern Ontario.

The final funding consists of three components: - $200 million bought deal financing: 312,500,000 common shares at $0.64 per share, with BMO Capital Markets acting as sole bookrunner. Closing is expected on or about September 21, 2026. - $40 million private placement: 62,500,000 common shares at $0.64 per share to the Canada Growth Fund. - $100 million subordinated unsecured convertible notes: $50 million from the Canada Growth Fund and $50 million from the Canada Infrastructure Bank. Interest is 9% per annum, semi-annual, cash or PIK. The conversion price is 40% above the $0.64 share price, or approximately $0.896 per share.

The company also announced an offtake agreement with Glencore AG for Marathon concentrate. Under the terms, Glencore will take 100% of concentrate production in the first two calendar years, approximately 50% in intervening years, and 100% from year 13 onward, with a minimum 14-year term starting September 1, 2028. The concentrate is intended for Glencore Canada’s Horne smelter and CCR refinery in Quebec.

The full financing package includes previously announced senior secured debt of US$310 million (approximately CAD $424 million) from EDC, ING, and Societe Generale; previously announced CIB subordinated debt of CAD $200 million; an undrawn metals stream with Wheaton Precious Metals of CAD $200 million; estimated equipment leasing of approximately CAD $145 million; and the final funding of CAD $340 million.

Additionally, the package includes a $185 million cost overrun facility, of which $95 million comes from the final funding and $90 million from the previously announced CIB facility, plus $119 million in contingency and $78 million in surety bonds and letters of credit.

The transactions remain subject to shareholder, TSX, and other regulatory approvals. A special shareholder meeting is expected in Q4 2026. The board has not yet made a formal final investment decision; it is expected to convene after completion of all final funding components.

Generation Mining Limited (GENM) has assembled the full financing stack required to begin construction of its Marathon project, a move that significantly alters the company’s trajectory from developer to builder. The announcement arrives with substantial context: prior-period financials as of June 30, 2026, showed only $33.4 million in cash and included a going-concern warning in the MD&A. At the time of the release, the company held a pre-closing market capitalization of approximately $229 million against a project construction package valued at roughly $1.3 billion.

The financing package includes Canada Growth Fund as a first-time strategic investor, anchoring approximately $140 million across a bought deal, private placement, and notes. Additionally, a offtake agreement with Glencore provides commercial validation and a domestic processing route. The capital structure is designed to address more than just initial construction costs; it covers cost overruns, contingency funds, surety bonds, and letters of credit.

The deal introduces significant dilution for existing shareholders. The bought deal and Canada Growth Fund private placement add 375,000,000 new common shares to the capital structure. This compares to approximately 322,840,243 shares outstanding as of June 30, 2026, representing a roughly 116% increase in common shares outstanding before any convertible note conversion. Furthermore, the $100 million in convertible notes adds potential future dilution at approximately $0.896 per share. The financing was priced at $0.64, which is below the September 14 closing price of $0.71 and below the January 2026 unit offering price of $0.72, which included warrants.

The transaction is not yet closed and remains subject to several conditions, including shareholder approval, TSX approval, definitive documentation, and a formal board investment decision. While previous releases on June 17 and June 22, 2026, disclosed individual debt approvals, this announcement marks the completion of the final funding package, the inclusion of the first-time Canada Growth Fund anchor, and the Glencore offtake agreement.

Generation Mining Limited (TSX: GENM; OTCQB: GENMF) is a Canadian critical minerals company focused on its flagship Marathon Copper-Palladium Project in Northwestern Ontario, near the town of Marathon. The company holds 100% ownership of the asset, which has completed its feasibility study and is considered shovel-ready, though construction has not yet commenced. The project targets copper and palladium, with by-products including platinum, gold, and silver.

According to the company’s investor presentation, total proven and probable reserves stand at 128.3 million tonnes grading 0.64 g/t palladium, 0.21% copper, 0.20 g/t platinum, 0.07 g/t gold, and 1.7 g/t silver. These reserves contain approximately 2.627 million ounces of palladium, 605 million pounds of copper, 815,000 ounces of platinum, 291,000 ounces of gold, and 6.877 million ounces of silver. Additionally, the project’s measured and indicated resources total 244.1 million tonnes containing approximately 4.039 million ounces of palladium and 1.091 billion pounds of copper, while inferred resources amount to 29.8 million tonnes.

A feasibility study effective November 1, 2024, outlined after-tax economics of $1.07 billion NPV at a 6% discount rate, a 28% internal rate of return, and a 1.9-year payback period, based on initial capital of $992 million CAD. An August 2026 spot-price scenario presented in the investor materials projected an after-tax NPV of $1.9 billion CAD, a 38% after-tax IRR, and a 1.4-year payback. This scenario utilized spot prices of $6.60/lb for copper, $1,313/oz for palladium, $1,827/oz for platinum, $4,518/oz for gold, and $68/oz for silver.

Regarding development status, Ausenco was appointed as the EPCM partner in March 2026. Prior MD&A context indicates that final construction permits are in hand. The Biigtigong Nishnaabeg First Nation has entered into a Community Benefits Agreement and invested in the company. Generation Mining has also secured construction-readiness items, including workforce accommodation, major equipment procurement, and powerline planning.

Royalty structures include a gold and platinum stream held by Wheaton Precious Metals, and the materials do not state that the Marathon project is royalty-free. A December 2025 land acquisition added claims subject to a 2% NSR, with a right to repurchase 1% for $500,000.