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Generation Mining finalizes offtake term sheet with Glencore for copper concentrate from Marathon

Kitco Media
By Vladimir Basov
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(Kitco News) - Generation Mining (TSX: GENM) announced today it has finalized an offtake term sheet with Glencore for copper concentrate, containing copper, palladium, platinum, gold, and silver, to be produced at Gen Mining's Marathon palladium-copper project, located near Marathon, Ontario.

The company said that under the term sheet, Glencore will purchase an average of 50% of the total copper concentrate to be produced from the Marathon project. It is expected that production from the Marathon project will be treated by Glencore's Horne smelter in Quebec, Canada.

According to a press release, the term sheet includes anticipated specifications for the polymetallic copper concentrate expected to be produced at the Marathon project, treatment and refining charges, and applicable penalties, if any, for deleterious elements.

The company said that metallurgical testwork has indicated that the concentrate is unlikely to incur any penalties, adding that the term sheet remains subject to final documentation, including customary offtake terms and conditions.

"This offtake term sheet also provides additional benefits for Gen Mining, including attractive metal payment terms, credit support from Glencore for the project's environmental reclamation financial surety requirements, and working capital facilities," it said.

Gen Mining noted it has also finalized an offtake term sheet with a European integrated copper group which will purchase the balance of the concentrate produced by the Marathon project.

The company said it 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.

Gen Mining's focus is the development of the Marathon project, a large undeveloped palladium-copper deposit in Northwestern Ontario.

Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than commodities.

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Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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