Toronto-listed Generation Mining has finalised an offtake term sheet with diversified major and commodities trader Glencore for copper concentrate, containing copper, palladium, platinum, gold and silver, to be produced at its Marathon palladium/copper project, in Ontario.
Glencore will buy an average of 50% of the total copper concentrate to be produced from the Marathon project. The concentrate will be treated at Glencore’s Horne smelter, in Quebec.
Gen Mining has also finalised an offtake with a European copper group, which will purchase the balance of the concentrate produced by Marathon.
“We are pleased to have Glencore as an offtake partner as we advance the Marathon palladium/copper project to construction and production. 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,” said Gen Mining president and CEO Jamie Levy.
The company expects to enter into final, binding offtake agreements for 100% of the production in conjunction with the completion of its project financing, anticipated later this year.
The Marathon processing plant will operate at about 9.2-million tonnes a year of ore to produce about 87 000 t/y of copper concentrate.
Based on current mineral reserves, over its planned 13-year mine life, the Marathon project concentrate is expected to deliver 1.91-million ounces of palladium, 467-million pounds of copper, 537 000 oz of platinum, 151 000 oz of gold and 2.82-million ounces of silver in payable metals.