Generation Mining in $12m deal with Hycroft
Generation Mining, the Toronto Stock Exchange-listed mining company, has said that its wholly owned subsidiary, Generation PGM, has entered into an agreement with Hycroft Mining Holding, for the purchase of an unused, surplus SAG mill and ball mill. Both are stored in Nevada and Texas, USA.
The purchase agreement is for USD$12,000,000, of which $500,000 will be due on signing, while the second payment of $500,000 is not due till September 30, 2022, a statement said.
It added that a final payment of $11,000,000 will not be due later than March,31, 2023. Generation PGM will also assume certain costs related to the mills, including storage, insurance and financing charges, if any, until the completion of the sale.
Jamie Levy, President and Chief Executive Officer of Gen Mining stated, “With the procurement of the Mills, we continue to advance the Marathon Project and reduce some of the risk associated with the procurement, logistics and cost-uncertainty associated with long-lead items for the Project.”
He added that prior to entering into the agreement, the mills were inspected by FLSmith (mechanical and structural), while ABB checks the electricals. Additionally, Orway Mineral Consultants completed a design applicability review.
Furthermore, prior to installation, FLSmith recommended a series of cosmetic upgrades and painting of the mill components, the statement detailed, adding that ABB recommended the updating of the mills drives. Overall, the reports confirmed the suitability of the mills for use on the Marathon Project.
“The Mills are slightly larger in size and power than contemplated in the March 2021 Feasibility Study, which will allow for the grinding circuit to be operated in a SAB configuration (as opposed to SABC) thereby eliminating the need for a pebble crusher in the current design. Wood Engineering has included these Mills in the current detailed engineering design being progressed,” the statement added.
The company said that on August 2, 2022, the Joint Review Panel issued its Environmental Impact Statement Report to the Federal and Provincial Ministers of the Environment, with final Ministerial decisions the Environmental Assessment processes expected within 120 days of delivery of the report.
Once a favourable decision is made, Generation Mining expects to start construction on the project late in the first quarter of 2023.
The Marathon Project is a large, undeveloped palladium-copper deposit in North-western Ontario. The property covers a land package of approximately 22,000 hectares or 220 square kilometre and is 100% owned by Generation Mining.