Magna Mining raising $25 million for Sudbury Ontario projects
Magna Mining Inc. [NICU-TSXV, MGMNF-OTCQB, BYD-FSE] said it has struck a deal with a syndicate of agents in connection with a best-efforts private placement offering with proceeds earmarked for the company’s copper, nickel and Platinum Group metal (PGM) projects in Sudbury, Ont. The offering will consist of up to $15 million aggregate principal amount of unsecured convertible debentures, issued in ordinary multiples of $1,000, less an original issue discount of 2.0% of the principal amount of the debentures. It will also consist of up to 6.45 million common shares, priced at $1.55 per common share, generating additional gross proceeds of $10 million.
The company has granted the agents an option to increase the size of the offering by up to 15% of the number of offered securities. That option can be exercised for up to three business days prior to closing, which is expected to occur on February 27, 2025.
The principal amount of the convertible debentures will bear interest at a fixed rate of 10% annually, payable in cash quarterly in arrears, and will mature on the date that is four years after the closing date. The convertible debentures will be issued pursuant to the terms of a debenture indenture to be entered into by the company on or about the closing date.
The principal amount of each convertible debenture (excluding the amounts attributed to the OID) will be convertible, at the election of the holder, into common shares at a conversion price of $2 per common share at any time until the earlier of (i) the business day preceding the maturity date; and (ii) the date of repayment in full of the principal amount of the convertible debentures and all accrued and unpaid interest.
Magna Mining was in the news recently when the company said it has struck a deal with a subsidiary of KGHM international Ltd. to acquire a portfolio of base metal assets in the Sudbury Basin in Ontario.
The KGHM Group has geographically-diversified mining assets in Poland, the United States, Chile and Canada.
Magna said it would acquire the producing McCreedy West Copper mine, the past-producing Levack mine, the Podolsky mine, and Kirkwood mine as well as the Falconbridge Footwall (81.41%), Northwest Foy (81.41%), North Range and Rand exploration assets.
Magna CEO Jason Jessup said Magna would immediately become a copper and nickel mining company with an extensive portfolio of development and exploration assets in the premier critical mining district in Canada.
The company’s flagship assets are the Shakespeare and Crean Hill mines. Shakespeare is a feasibility-stage project which has major permits for construction of a 4,500 tonne-per-day open pit mine, processing plant and tailings storage facility. Crean Hill is a past-producing nickel, copper and PGM mine.
Magna Mining shares were active on the news, easing 5.9% or 11 cents to $1.73. The shares previously traded in a 52-week range of $1.86 and 39 cents.