Generation Mining Closes "Bought Deal" Public Offering and Concurrent Private Placement for Gross Proceeds of $240 Million
Generation secures $1.3 billion in financing and a Glencore offtake agreement to fund its Marathon project.
Generation Mining Limited (GENM) closed a $240 million capital raise on September 21, 2026, consisting of a $200 million bought-deal public offering and a $40 million concurrent private placement with the Canada Growth Fund (CGF). The transaction issued 312.5 million common shares to the public and 62.5 million shares to CGF, both priced at $0.64 per share.
CGF now holds approximately 19.9% of the company on a non-diluted basis and secured an investor rights agreement granting board nomination and observer rights, registration rights, and pre-emptive and top-up rights. Additionally, a long-term offtake agreement with Glencore AG was finalized, committing to purchase polymetallic copper concentrate from the Marathon Project, which supports domestic processing at Glencore’s Quebec facilities.
Proceeds are designated to fund the development, construction, and operation of the 100%-owned Marathon Copper-Palladium Project, alongside general and administrative costs. The transaction remains subject to final Toronto Stock Exchange (TSX) approval.
Generation Mining Limited (GENM) closed its financing package on September 21, executing the terms announced on September 14, 2026. The transaction resolves the going concern uncertainty previously flagged in the company’s June 2026 Management’s Discussion and Analysis. With the closing, the company now holds approximately $273 million in cash, comprising $33.4 million in prior balances and $240 million in proceeds, against $95.9 million in existing debt.
The deal includes the inclusion of CGF as a strategic shareholder with board rights and a Glencore offtake agreement. These elements validate the project’s economics and secure a domestic processing pathway. The capital raise was fully subscribed at an issue price of $0.64, a discount to the recent trading range of approximately $0.70 to $0.71. The funds are necessary to advance the project into the construction phase, though the transaction carries significant dilutive impact that was priced in following the September 14 announcement.
Generation Mining Limited (TSX: GENM) has completed a feasibility study for its Marathon Copper-Palladium Project, located in Northwestern Ontario approximately 10 km from the Town of Marathon. The project is fully permitted and construction-ready, with the study becoming effective on November 1, 2024.
The feasibility study outlines a 13-year mine life with an internal rate of return of 28%, a net present value of $1.07 billion at a 6% discount rate, and a payback period of 1.9 years. Production over the mine life is projected to include approximately 2.16 million ounces of palladium, 532 million pounds of copper, 488,000 ounces of platinum, 160,000 ounces of gold, and 3.05 million ounces of silver.
The site is situated on the Trans-Canada Highway and served by the CPR main line, with access to a commercial airport and nearby workforce communities. Agreements for powerlines and plans for workforce accommodation are currently advanced.