Generation Mining Limited ("Gen Mining" or the "Company") announces that its wholly-owned subsidiary, Generation PGM Inc. ("Gen PGM"), which is developing the Marathon Palladium Copper Project (the "Marathon Project") near Marathon, Ontario, has entered into an agreement with Hycroft Mining Holding Corporation ("Hycroft") for the purchase of an unused, surplus SAG mill and ball mill (the "Mills") currently stored in Nevada and Texas, USA for US$12,000,000, of which US$500,000 is due on signing, the second payment of US$500,000 is due not later than September 30, 2022, and a final payment of US$11,000,000 is due not later than March 31, 2023.
Gen PGM will also assume certain costs related to the Mills, including storage, insurance and financing charges, if any, until completion of the sale.
Prior to entering into the agreement, the Mills were inspected by FLSmidth (mechanical, structural) and ABB (electrical) and additionally, Orway Mineral Consultants completed a design applicability review. Prior to installation, FLSmidth has recommended cosmetic upgrades and painting of the mill components and ABB has recommended updating the Mills' drives. Overall, the reports have confirmed that the Mills are suitable 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.
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."
On August 2, 2022, the Joint Review Panel issued its Environment Impact Statement Report to the Federal and Provincial Ministers of the Environment. Final Ministerial decisions in the Environmental Assessment process are expected to be delivered within 120 days of delivery of the Report. Upon receipt of favourable decisions from the Ministers and the required permits, the Company anticipates starting construction late in the first quarter of 2023.