Magna Mining has agreed to acquire several base metal assets in the Sudbury Basin, Ontario, Canada, from KGHM International.
The consideration includes C$5.3m ($3.90m) in cash and $2m in Magna common shares. It also includes C$2m in cash on 31 December 2026 and additional future payments of up to C$24m, contingent on performance.
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Under the agreed terms, Magna Mining will acquire the operating McCreedy West mine, which produced 317,660 tonnes in 2023, and three past-producing mines – Levack, Podolsky and Kirkwood.
The Levack mine, currently on care and maintenance, offers near-surface, high-grade nickel and copper zones that are being evaluated for a potential restart.
Currently on care and maintenance since 2013, the Podolsky mine presents near-surface mining potential in the copper-rich North Zone and the opportunity to develop the Nickel Ramp deposit, Magna said.
The transaction further encompasses an extensive exploration property portfolio in the Sudbury Basin, including the Falconbridge Footwall, Northwest Foy, North Range and Rand exploration properties.
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By GlobalDataMagna is in the process of securing funding for the acquisition, negotiating a commitment letter for a C$10m three-year term loan facility and a C$10m letter of credit facility with Fédération des caisses Desjardins du Québec, a subsidiary of Desjardins Group.
The acquisition is expected to bolster Magna’s mineral resource potential and near-mine exploration opportunities.
Magna CEO Jason Jessup said: “Upon closing this acquisition, Magna will immediately become a copper and nickel mining company with an extensive portfolio of development and exploration assets in the premier critical mineral mining district in Canada.
“The sale assets are non-core to their owners and due to this, we believe, have not been allocated the capital needed to realise their full potential. We plan to reinvest most of the profits that may be generated from McCreedy West back into additional capital development and exploration focused on expanding resources, increasing production and making new discoveries.
“This acquisition creates a clear pathway to realising our stated goal of having three or more producing mines within three to five years.”
