TSX-listed Generation Mining Limited (Gen Mining) has agreed to sell its rights and interests in its Davison molybdenum-tungsten deposit, located near the town of Smithers, British Columbia, to Moon River Capital Ltd. (Moon River), a capital pool company listed on the TSX Venture Exchange, for $630,000 in cash, 9.0 million common shares of Moon River and certain nomination and pre-emptive shareholder rights. Following completion of the transaction, Moon River will engage in exploration and development activities in order to advance a preliminary economic assessment on the Davidson Property.
Paul Murphy, independent Lead Director of Gen Mining of Gen Mining said: “The Davidson Property is a large molybdenum-tungsten deposit which deserves additional attention and resources in this robust market for both molybdenum and tungsten. Ian McDonald, Interim Chief Executive Officer and a Director of Moon River, is the former Executive Chairman and CEO of Thompson Creek Metals Company Inc., which was focused on molybdenum production and was previously involved with the Davidson Property through the predecessor company to Thompson Creek, which completed a resource evaluation on the property in 2004/2005. “Given Gen Mining's focus on developing the Marathon Palladium-Copper Project, this deal with Moon River meets two key goals. It allows Gen Mining to retain an interest in the property and for the Davidson Property to get the attention it so richly deserves.” Paul Murphy went on. “The approval of this transaction by the independent members of the board signifies the strength and prudence of the deal, reflecting the commitment of both parties to a successful outcome.”
Gen Mining’s focus is the development of a large undeveloped palladium-copper deposit, The 22,000-hectare Marathon Palladium-Copper Project (Marathon), 100% owned by Gen Mining, is located along the Trans-Canada Highway in Northwestern Ontario. A March 2023 updated feasibility study has indicated Marathon has a net present value of C$1.16bn (using a 6% discount rate) with a payback of 2.3 years and a robust internal rate of return of 25.8% based on US$1,800/oz and US$3.70/lb for palladium and copper respectively. Marathon is projected to produce a total of 3.6m ounces of palladium equivalent (PdEq) over its current 12.5-year mine life. Initial capital costs are estimated at C$1.11bn, ($898m net of equipment financing and pre-commercial production revenue). At US$1,800/oz Pd and US$3.70/lb Cu approximately 58% of the revenue will come from palladium, with 29% coming from copper. The remaining revenue will come from platinum, gold and silver.
Marathon is located along the Trans-Canada Highway in Northwestern Ontario. A March 2023 Updated Feasibility Study has indicated the Marathon project has a net present value of C$1.16bn (using a 6% discount rate) with a payback of 2.3 years and a robust internal rate of return of 25.8% based on US$1800/oz and US$3.70/lb for palladium and copper respectively. Marathon is projected to produce 3.6m ounces of PdEq over its current 12.5-year mine life.
Canada's Federal Minister of Environment and Climate Change and the Ontario Minister of the Environment, Conservation and Parks have each given qualified approval to the project. These government decisions validate the work done to date to develop the Marathon Project as a sustainable, environmentally sensitive, low-cost producer of critical metals that are needed to support emissions controls and the transition to a greener economy, the company says.