Generation Mining and Biigtigong Nishnaabeg First Nation Announce Memorandum of Agreement
TORONTO, Jan. 27, 2022 (GLOBE NEWSWIRE) — Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) (“Gen Mining” or the “Company”) and Biigtigong Nishnaabeg (“BN”) are proud to announce the signing of a Memorandum of Agreement (“the MOA”) for the Marathon Palladium Copper Project (“Marathon Project”) located in Northwestern Ontario.
This MOA signals another important milestone for the Marathon Project, as it nears regulator approval through the environmental assessment process and is in line with Gen Mining’s Indigenous relations policy and practice of maximizing community participation and benefits throughout the life of the project.
The Company recognizes that there are established businesses within the BN community that can contribute to the Marathon Project, and we are proud to formalize this commitment with the signing of this MOA, pursuant to which the Company has committed to:
- Collaborate on sustainable community-based business opportunities that will last beyond the life of the Marathon Project
- Target and support businesses that include training, development and growth of BN community members in their professional development and long-term employment
- Support strategic partnerships and initiatives that help BN participate in opportunities to gain management experience in the mining industry
- Support BN with their strategic goals of growing current and aspirational sustainable businesses.
In addition, the MOA defines some of the contracting projects that will be sole-sourced to BN to further maximize economic benefits for the Marathon Project’s closest Indigenous partner community.
Jamie Levy, President and CEO of Gen Mining, commented, “Gen Mining respects the Indigenous culture and the environment where we work and plan to operate. We very much value the support of BN for the development of the Marathon Project. We are proud to be partners with BN and look forward to ongoing collaboration in the years to come.”
“This Memorandum of Agreement sets a strong foundation for us to work collectively with Gen Mining on a number of business opportunities. It facilitates a process to ensure that our First Nation can and will capitalize on economic opportunities during critical stages of the mine development. We look forward to the implementation and advancement of this MOA” said Debi Bouchie, Director of Operations for BN.
The MOA is one of the components of the Community Benefit Agreement (“CBA”) that Gen Mining and BN are currently advancing.
About the Company
Gen Mining’s focus is the development of its 100% owned Marathon Project, a large undeveloped platinum group metal mineral deposit in Northwestern Ontario. The Company released the results of the Feasibility Study on March 3, 2021 and published the NI43-101 Technical Report dated March 25, 2021. The Marathon property covers a land package of approximately 22,000 hectares, or 220 square kilometres. Gen Mining owns a 100% interest in the Marathon Project.
The Feasibility Study in respect of the Marathon Project estimated that at US$1725/oz palladium, and US$3.20/lb copper, Marathon’s Net Present Value (at 6% discount rate) is approximately C$1.07 billion with a payback of 2.3 years and an Internal Rate of Return of 30%. Up front capital costs were estimated at C$665 million. The mine would produce an estimated 245,000 palladium equivalent ounces per year over a 13-year mine life at an All-In Sustaining Cost of US$809 per palladium-equivalent ounce. For more information, please review the detailed Feasibility Study dated March 25, 2021, filed under the Company’s profile at SEDAR.com.
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President and Chief Executive
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “Projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved, including statements relating to the collaboration with BN and the Company advancing the Marathon Project to bring it into production. All forward-looking statements, including those herein are qualified by this cautionary statement.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information. These include commodity price volatility, continued availability of capital and financing, uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, the Company’s relationships with First Nations communities, exploration successes, and general economic, market or business conditions, as well as those risk factors set out in the Company’s annual information form for the year ended December 31, 2020, and in the continuous disclosure documents filed by the Company on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements.
Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions relating to: the availability of financing for the Company’s operations; operating and capital costs; results of operations; the mine development and production schedule and related costs; the supply and demand for, and the level and volatility of commodity prices; timing of the receipt of regulatory and governmental approvals for development Projects and other operations; the accuracy of Mineral Reserve and Mineral Resource Estimates, production estimates and capital and operating cost estimates; and general business and economic conditions.
Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking information. For more information on the Company, investors are encouraged to review the Company’s public filings on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.