Generation Mining has started work at Marathon. The release does not mention the US$310 million loan

Generation Mining (TSX: GENM) said on October 1 that it has started construction at its Marathon copper-palladium project in Northwestern Ontario. "With our Construction Phase financial assurance now posted, crews are working on the ground at Marathon," chief executive Jamie Levy said.

What has started

The release describes an early works program running from the fourth quarter of 2026 into 2027. It covers site access, plant site clearing, water management, camp upgrades, temporary facilities, earthworks and environmental controls.

On equipment, Generation expects to pay about $30 million up front to secure about $150 million of critical equipment, including crushers, mills and flotation, which it says is in line with the feasibility study budget and schedule.

The company has posted a $6.5 million bond for the construction phase. Under Ontario's Mining Act, the bond is matched to the disturbance as it happens rather than funding closure for the whole mine life up front.

The money behind it

In June, Generation announced credit approval for a US$310 million (C$424 million) senior secured facility from Export Development Canada, ING Capital and Société Générale. That release listed about C$769 million secured in total, including a C$200 million stream with Wheaton Precious Metals and C$145 million of equipment leasing.

Credit approval is not a closed loan. The June release said the facility was subject to final documentation, an intercreditor agreement and "satisfaction of a fully funded project construction package," including subordinate debt, surety and equity arrangements.

The October 1 release does not say whether those conditions have been met or whether the senior facility has closed. It does not give a total capital cost either.

The study numbers

Generation's feasibility study, quoted again in the release, shows an after-tax net present value of $1.07 billion at a 6% discount rate, an internal rate of return of 28%, and a payback of 1.9 years over a 13 year mine life.

What to watch

A closing announcement for the senior facility. Early works can run on equipment deposits and a bond. A mill cannot.

Sources: Generation Mining news release, October 1, 2026; Generation Mining news release, June 17, 2026.