Glencore International and Generation Mining (Gen Mining) have finalised an offtake term sheet whereby the latter will supply copper concentrate from its Marathon Palladium-Copper Project near Marathon, Ontario, Canada.
As the term sheet, Glencore will purchase an average of 50% of the Marathon Project’s future total copper concentrate.
It also covers anticipated specifications for the polymetallic copper concentrate to be produced at the Marathon Project, treatment and refining charges, as well as penalties for deleterious elements.
Generation Mining said that the concentrate is unlikely to incur any penalties, based on metallurgical testwork.
The offtake term sheet will also provide additional benefits, including metal payment terms, working capital facilities, and credit support from Glencore for the environmental reclamation financial surety requirements and working capital facilities for the project.
According to a press release, the term sheet is subject to final documentation, including customary offtake terms and conditions.
Furthermore, the release stated that Gen Mining has finalised an offtake term sheet with an undisclosed European integrated copper group to supply the balance of the concentrate from the Marathon project.
Production from the project, which also hosts platinum, gold and silver, is anticipated to be treated at Glencore’s Horne smelter in Quebec.
Gen Mining president and CEO Jamie Levy said: “We are pleased to have Glencore as an offtake partner as we advance the Marathon Palladium-Copper Project to construction and production.
“These offtake arrangements will ensure the Marathon Project has customers for its production and will enable downstream processing of critical minerals in Canada.
“Moreover, this provides a strong commercial commitment from a highly regarded counterparty to support our expected project financing requirements.”
Gen Mining plans to sign final, binding offtake agreements for 100% production from the project and complete related financing later this year.