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Generation Mining (TSX: GENM) has moved one step closer to building North America’s next PGM (platinum group metals) and copper mine after securing approval for construction of key infrastructures.
On Wednesday, the company announced that the federal government has approved amendments to the Metal and Diamond Mining Effluent Regulations — effectively allowing the construction of specific water management structure at its Marathon mine site in Ontario.
The milestone follows the approval by the Ontario government of the mine’s closure plan last November, as well as the environmental approvals obtained before that.
Receipt of the few remaining approvals and permits (provincial and federal) required for construction is expected in the coming months, Generation Mining said in a news release.
“We are now on the cusp of having one of the only permitted copper and PGM projects in North America that can be constructed and brought into operation once we obtain the requisite financing,” CEO Jamie Levy said.
“The Marathon project is one of the most advanced critical mineral projects in Canada, and this government approval represents another milestone on the path to developing Canada’s next copper and palladium mine,” Levy added.
According to a new feasibility study released this year, the Marathon project in northwestern Ontario is expected to produce an average of 166,000 oz. of payable palladium and 41 million lb. of payable copper annually over a 13-year mine life.
The study estimated an after-tax net present value (using a 6% discount rate) of C$1.16 billion, an internal rate of return of 25.8%, and a 2.3-year payback. Initial capital costs of the project are pegged at C$1.11 billion.
Generation Mining’s stock surged 11.5% by 3 p.m. ET following the latest development. This gave the company a market capitalization of approximately C$68.5 million ($49.3m).
