Canada-based Magna Mining has entered into an agreement with SCP Resource Finance and Desjardins Capital Markets to act as co-lead agents for a private placement offering to raise C$25m.
The proceeds will be used to fund the company’s Sudbury projects in Ontario and for general corporate and working capital purposes.
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Sudbury is a major global hub for nickel and copper production and is considered the “centre of Canada’s mining industry”, claims the company.
Magna Mining’s projects in the region include the Crean Hill Mine and the Shakespeare Project.
The offering includes up to C$15m in unsecured convertible debentures, issued in C$1,000 increments with a 2% original issue discount.
The company will also issue up to 6,451,612 common shares at C$1.55 per share for gross proceeds of up to C$10m.
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By GlobalDataThe agents have an option to increase the offering size by 15%, exercisable any time up to three business days before the offering’s closing.
The debentures will have a four-year maturity with a 10% annual interest rate, payable quarterly.
The convertible debentures, bearing a 10% interest rate, will mature four years from the closing date.
They can be converted into common shares at C$2 each, with a provision for mandatory conversion if the share price exceeds 150% of the conversion price for 20 consecutive trading days after the two-year anniversary of the closing date.
The offering is expected to close on 27 February 2025, subject to regulatory approvals and a standard four-month hold period.
In September last year, Magna Mining agreed to acquire several base metal assets in the Sudbury Basin, including the McCreedy West, Levack, Podolsky and Kirkwood mines, from KGHM International.
The company also signed an offtake deal with Vale Canada, a unit of Vale Base Metals, for the advanced exploration phase of its Crean Hill Project.
