Generation Mining Raises C$20 Million to Propel Major Ontario Copper-Palladium Mine

TORONTO, ON – January 07, 2026 – Generation Mining Ltd. (TSX: GENM) today announced a significant step forward in its quest to develop a major critical minerals mine in Northwestern Ontario, securing C$20 million in a bought deal public offering.

The financing, led by Stifel Nicolaus Canada Inc., will see the company issue 27,780,000 units at a price of C$0.72 each. The proceeds are earmarked to advance the company's flagship Marathon Project, a large and undeveloped copper and palladium deposit that is poised to become a key supplier of metals essential for the green energy transition.

Each unit in the offering consists of one common share and one-half of a common share purchase warrant, with each full warrant allowing the holder to purchase an additional share at C$1.00 for 24 months. The deal also includes an over-allotment option that could raise an additional C$3 million. While the announcement saw the company's stock dip 6% to C$0.78—a common market reaction to potential shareholder dilution—the strategic importance of the capital injection for the project's timeline is paramount.

Fueling the 'Shovel-Ready' Marathon Project

The C$20 million infusion provides crucial pre-construction funding for what is considered a "shovel-ready" project. Generation Mining successfully secured all final key permits for construction in 2025, culminating a rigorous multi-year environmental assessment process. The net proceeds will be used for exploration, development, working capital, and general corporate purposes as the company marches toward a final construction decision.

This financing is a key piece of a much larger puzzle. The Marathon Project's 2025 Feasibility Study pegged the initial capital cost at C$992 million. Generation Mining has already structured a multi-faceted financing strategy to meet this requirement. This includes a C$240 million precious metals stream with Wheaton Precious Metals, of which C$40 million has been advanced. The company is also in negotiations for a senior secured project finance facility of up to C$540 million with a syndicate of banks including Export Development Canada.

Further bolstering its financial position, the company received a support letter in May 2025 from a major Canadian financial institution for an additional C$200 million credit facility. With strong interest from federal agencies in supporting domestic critical minerals projects, this C$20 million offering provides the necessary liquidity to bridge the gap until these larger financing packages are finalized and a formal construction decision, anticipated for late 2026, is made.

If the timeline holds, a two-year construction period would see the mine commissioned by the summer of 2028, positioning it to enter a very favorable market.

Tapping into Hot Commodity Markets

The Marathon Project's economic projections are underpinned by a robust outlook for its primary metals: copper and palladium. The mine is projected to produce an average of 42 million pounds of copper and 168,000 ounces of palladium annually over a nearly 13-year life.

Copper markets are experiencing unprecedented demand driven by the global energy transition. Analysts from J.P. Morgan to Goldman Sachs project sustained high prices through 2026, with forecasts ranging from $10,000 to over $12,000 per metric tonne. A projected global refined copper deficit, fueled by demand for electric vehicles, renewable energy infrastructure, and new applications in artificial intelligence, creates a strong economic case for new sources of supply like the Marathon mine.

Palladium, a key component in automotive catalytic converters, also faces a tight market. Despite price volatility, the World Platinum Investment Council projects market deficits to continue into 2026. With over 80% of demand coming from the auto sector and the European Union softening its 2035 ban on internal combustion engines, industrial demand is expected to remain firm. Current prices are hovering near multi-year highs, adding significant value to the project's estimated C$1.07 billion after-tax net present value.

Balancing Progress with Partnership and Protection

Beyond its financial and market potential, the Marathon Project stands out for its advanced state of regulatory approval and community partnership. The project underwent a comprehensive assessment by a Joint Review Panel, integrating both federal and provincial requirements, and received its environmental assessment approval in late 2022. This approval came with 269 legally-binding conditions, ensuring the project adheres to stringent environmental protection standards throughout its lifecycle.

Crucially, Generation Mining has established a foundational relationship with the local Biigtigong Nishnaabeg First Nation, on whose exclusive Aboriginal title territory the project is located. In November 2022, a landmark Community Benefits Agreement (CBA) was ratified by the community. This agreement goes far beyond standard consultation, guaranteeing the First Nation direct financial participation in the project alongside commitments for employment, training, and exclusive contracting opportunities for community-owned businesses.

The company has also inked a consultation and process agreement with the Metis Nation of Ontario, signaling its intent to build broad Indigenous support. This proactive approach to building partnerships is increasingly seen as a critical de-risking factor for major resource projects in Canada, providing a stable foundation for development and long-term operation.

With this latest round of funding secured, Generation Mining is well-positioned to complete its final pre-development milestones. The C$20 million acts as a vital catalyst, enabling the company to continue advancing a project that promises not only significant returns for investors but also a substantial contribution to Ontario's economy and Canada's strategic position in the global critical minerals supply chain.