Magna Mining seals C$25 Million Private Placement to advance Sudbury projects
Magna Mining has announced a private placement offering of up to C$25 million to advance its Sudbury-based projects. The offering consists of unsecured convertible debentures and common shares, with proceeds allocated for exploration and corporate purposes.
The financing arrangement includes up to C$15 million in unsecured convertible debentures and up to C$10 million in common shares, issued at C$1.55 per share. The convertible debentures bear a fixed interest rate of 10% annually, payable quarterly in cash, and will mature four years from the closing date. They are convertible at a price of C$2.00 per share until maturity or full repayment.
The agreement is being facilitated by SCP Resource Finance LP and Desjardins Capital Markets as co-lead agents, with an option for an additional 15% increase in the offering size. The financing is expected to close by February 27, 2025, subject to regulatory approvals, including from the TSX Venture Exchange.
"This financing positions us to accelerate development of our Sudbury assets and execute on our long-term growth strategy," said Magna Mining CEO Jason Jessup. "The strong support from investors underscores confidence in our projects and the potential they hold."
The debentures may be converted at the company’s discretion if Magna’s stock price exceeds 150% of the conversion price for 20 consecutive trading days after the two-year anniversary of the closing date. Agents will receive a cash commission ranging from 2% to 6%, depending on the investor category.
All securities issued will be subject to a four-month statutory hold period under Canadian securities laws. The offering is not registered under the U.S. Securities Act and may not be sold in the United States without an applicable exemption.
About Magna Mining
Magna Mining is focused on the exploration and development of nickel, copper, and PGM projects in Ontario’s Sudbury region. The company’s flagship assets include the past-producing Shakespeare and Crean Hill Mines. The Shakespeare Mine is a feasibility-stage project with permits for a 4,500-tonne-per-day open-pit operation, processing plant, and tailings facility. Crean Hill, another past producer, has a technical report dated July 2023, supporting its redevelopment potential.
By Kevin Vincent, Senior Contributing Editor to Mining Life Online and Mining Life & Exploration News.
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