- Magna Mining (NICU) has signed a share purchase agreement to acquire 100 per cent of Lonmin Canada (Loncan)
- The acquisition incorporates the Denison Project and the past-producing Crean Hill Ni-Cu-PGE mine
- The purchase price for the acquisition is $16,000,000
- To fund the cash component of the acquisition, Magna Mining is planning a private placement for gross proceeds of up to $20,000,000
- Magna is an exploration and development company focused on nickel, copper and PGM projects
- Magna Mining Inc. opened the day’s trading at C$0.29 per share
Magna Mining (NICU) has signed a share purchase agreement to acquire 100 per cent of Lonmin Canada (Loncan).
The acquisition incorporates the Denison Project and the past-producing Crean Hill Ni-Cu-PGE mine.
“The Crean Hill Mine was a significant producer in the Sudbury basin for more than 80 years and we believe the Denison Project has potential to add tremendous value through development of the remaining historical mineral resources and additional exploration on the property,” noted Magna’s CEO, Jason Jessup.
“The successful closing of this transaction will be transformative for Magna and has several potential synergies with Magna’s fully permitted, advanced stage Shakespeare Project,” he added.
The purchase agreement stipulates that Magna will acquire 100 per cent of the issued and outstanding shares of Loncan, whose core asset is the Denison Project.
The Denison Project is located within the Sudbury Basin mining district, 37 kilometres east of Magna’s advanced Shakespeare Project and covers the past-producing Crean Hill Mine.
The Crean Hill Mine operated during three separate periods, from 1906 to 2002, with past production totalling 20.3 Mt grading 1.3 per cent Ni, 1.1 per cent Cu, 1.6 g/t Pt+Pd+Au.
The aggregate purchase price for the outstanding shares of Loncan is equal to $16,000,000, made up of a closing payment of $13,000,000 in cash and a deferred payment of $3,000,000, payable pro rata to the vendors.
To fund the cash component of the purchase price for the acquisition, as well as ongoing exploration and development activities at the Denison Project, Magna Mining will conduct a private placement of up to 74,074,074 subscription receipts to raise gross proceeds of up to $20,000,000.
The private placement is expected to close on or around August 30, 2022.
Magna is an exploration and development company focused on nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada.
Magna Mining Inc. opened the day’s trading at C$0.29 per share.