Generation Signs Offtake Term Sheet With Glencore
Under the term sheet, Glencore will purchase an average of 50% of the total copper concentrate to be produced from Marathon. It is expected that the concentrate will be treated by Glencore’s Horne smelter in Quebec, Canada. The term sheet includes anticipated specifi cations for the polymetallic copper concentrate expected to be produced at the Marathon Project, treatment and refi ning charges, and applicable penalties, if any, for deleterious elements. Metallurgical testwork has indicated that the concentrate is unlikely to incur any penalties. The term sheet remains subject to fi nal documentation, including customary offtake terms and conditions.
This offtake term sheet also provides additional benefi ts for Gen Mining, including attractive metal payment terms, credit support from Glencore for the Project’s environmental reclamation fi nancial surety requirements, and working capital facilities. Gen Mining has also fi nalized an offtake term sheet with a European integrated copper group, which will purchase the balance of the concentrate produced by the Marathon project, and such offtake agreement will underpin the provision of certain loan guarantees in support of the construction fi nancing for the Marathon Project, all of which remains subject to fi nal documentation and the requisite approvals.
“These offtake arrangements will enable downstream processing of critical minerals in Canada,” said Jamie Levy, president and CEO, Gen Mining. “Moreover, this provides a strong commercial commitment from a highly regarded counterparty to support our expected project fi nancing requirements.”