Generation Mining Agrees to a Term Sheet with the Ontario Government for Funding to Support Construction of the Marathon Processing Facility

Generation Mining Limited has agreed to a non-binding term sheet with the Government of Ontario for a loan of up to $11 million through the Critical Minerals Processing Fund (CMPF). The funding is intended to support construction of the mineral processing facility at the 100%-owned Marathon Copper-Palladium Project. The loan amount is contingent on maintaining a minimum level of employment at the project and is calculated as a percentage of eligible project expenditures.

This $11 million facility complements a previously announced $1.3 billion fully financed construction package secured on September 14, 2026. The processing facility and related eligible expenditures represent approximately $410 million of the project's total $992 million capital cost. The project is described as fully permitted and construction-ready, with early works targeted to begin in Q4 2026.

Generation Mining Limited (GENM) announced on September 18 that it has secured an $11 million term sheet, a move that follows the landmark $1.3 billion financing package closed on September 14. The term sheet represents approximately 0.9% of the total construction package and does not materially alter the capital stack or de-risk the execution of the $1.3 billion facility.

The primary impact of the announcement is political and strategic validation. Securing Ontario government backing through the Critical Minerals Project Fund (CMPF) reinforces the project's status as a priority critical minerals asset, which may ease regulatory hurdles and improve community relations. However, from a cash flow perspective, the $11 million is insufficient to offset the company's immediate liquidity crunch. Generation Mining reported a $33.3 million net loss in the first half of 2026 and holds $33.4 million in cash. Consequently, the term sheet does not resolve the near-term going concern uncertainty.

Generation Mining Limited is developing the Marathon Copper-Palladium Project in Northwestern Ontario, located 10 km from the town of Marathon. The project is a fully permitted, construction-ready open-pit mining and processing complex that benefits from strong infrastructure, including Trans-Canada Highway access, CPR rail lines, nearby power lines, and a commercial airport.

A Feasibility Study effective Nov 1, 2024, outlines the project’s economic metrics, including an NPV of $1.07 billion at a 6% discount rate, an IRR of 28%, a payback period of 1.9 years, and a 13-year mine life. Estimated production over the mine life includes:

• ~2.16 million oz Palladium
• 532 million lbs Copper
• 488,000 oz Platinum
• 160,000 oz Gold
• 3.05 million oz Silver