• London
  • Vancouver
  • Camana Bay

US$190mTransaction amount

Marathon Palladium-Copper Project / Generation Mining

Marathon Palladium-Copper Project, a large undeveloped Cu-PGM mineral deposit in Northwestern Ontario

Background

Endeavour advised on the two-stage C$240 million (US$190 million) financing relating to the Marathon Palladium-Copper Project, a large undeveloped Cu-PGM mineral deposit in Northwestern Ontario.

Comprehensive financial advisory role including:

  • Managing full financing process, ensuring the Company’s critical timeline was met – 12-week process from start to finish
  • Marketing of the investment opportunity with potential financiers (bridge, offtake finance, stream & royalty providers)
  • Valuation and strategic analysis of offers received
  • Negotiations of term sheet, facility documentation, and intercreditor principles to align with Company’s goals and transaction suitability for the main project financing

Key Contacts

David Rhodes

Managing Director


Paul Mainwaring

Associate Director


Challenges

  • Pre-permit and pre-construction funding requirement (permitting cost, engineering cost and long-lead items)
  • Low market valuation (US$100m mkt cap) and negative perception of Sibanye decision not to increase JV ownership
  • Company preference to avoid high-cost financing and/or shareholder dilution
  • Requirement to ensure the financing facility did not compromise the future (post-permit) construction phase project financing

Solutions

  • Two phased gold and platinum stream (C$40m initial and C$200m construction finance)
  • Attractive cost of capital
  • Leverages off the project upside potential and favourable commodity market prices while ensuring investor is committed throughout the full development cycle

Case Studies

US$190m

Marathon Palladium-Copper Project / Generation Mining

Marathon Palladium-Copper Project, a large undeveloped Cu-PGM mineral deposit in Northwestern Ontario

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