Company: Generation Mining Limited (CSE: GENM)
Headquarters: Toronto, Ontario, Canada
Number of projects: 5 (BC, Alberta, Ontario and Nova Scotia)
President, CEO & Chairman: Jamie Levy
Chairman: Kerry Knoll
VP Exploration: Rodney Thomas
With five properties across some of Canada’s most coveted mining jurisdictions, Generation Mining Limited (Generation Mining) is a mineral exploration and development company with a unique proposition for potential investors. Generation Mining oversees copper, zinc, molybdenum and palladium projects. “10 million ounces of palladium are consumed annually,” explains VP Exploration, Rodney Thomas. “Generation Mining is the only pure play platinum palladium developer in a tier 1 market, which happens to be Ontario.”
In April, Generation Mining signed a binding letter of intent with South African precious metals producer, Sibanye, to acquire the Marathon PGM deposit, approximately 300 kilometres northeast of Thunder Bay, Ontario. “We have an option to earn an initial 51% interest in the property by making a payment of $3 million in cash and $3 million in shares. We also have the option to further increase our interest – to 80% – by spending $10 million over four years at which point a joint venture is formed with Sibanye-Stillwater.” Once the transaction has closed, Generation Mining plans to update the historic resource statement and thereafter complete a Preliminary Economic Assessment (PEA) drilling on the Marathon property later this summer.
One of the driving forces behind the move to form a partnership with Sibanye has to do with the valuable resource at the Marathon deposit. “Although there has been no development as of yet, a number of studies were conducted on the property indicating approximately 6.5 million ounces of palladium equivalent.” This figure is based on historic numbers that will be updated when a revised resource statement is published
A by-product of nickel and copper, palladium is most commonly used in the automotive industry to produce catalytic converters for vehicles, including hybrids. Catalytic converters help to keep emissions low. “In terms of consumption going forward, people will continue to depend on cars to get around, which means there will be a need for this resource in the future. Platinum can be substituted for palladium, but it is not as abundant.” The price of palladium has increased 93% since 2013 and it is expected to go up as demand increases with no immediate shortage in supply expected.
Generation Mining is led by an experienced team of experts. The company’s Chairman and Director, Kerry Knoll, was instrumental in leading large-scale mining operations at Wheaton River, Thompson Creek and Glencairn Gold. The company’s President, CEO and Director, Jamie Levy, has 25 years of experience in financing and management of mining companies and is the former President of Pine Point Mining, acquired by Osisko Metals in 2017.
Asked to summarize the reason why now is the time for investors to purchase Generation Mining stock, Thomas cites the following:
- Generation Mining entered a transformation transaction with Sibanye to acquire the Marathon PGM property on attractive terms
- Experienced senior leadership team with a track record of success. Headed by Kerry Knoll who led Wheaton River, Thompson Creek, Glencairn Gold, and Jamie Levy who led Pine Point Mining
- Generation Mining is the only pure play platinum palladium developer in a tier 1 jurisdiction – Ontario