Magna Mining Completes Acquisition of Sudbury Basin Base Metal Assets

Magna Mining has finalized the acquisition of a portfolio of base metals assets in the Sudbury Basin from an affiliate of KGHM International. The acquisition includes the operating McCreedy West copper mine, as well as the past-producing Levack, Podolsky, and Kirkwood mines.

The deal, completed under a share purchase agreement dated September 11, 2024, also includes exploration properties such as Falconbridge Footwall (81.41%), Northwest Foy (81.41%), North Range, and Rand. Through this transaction, Magna acquired 100% of Project Nikolas Company, which holds the purchased assets.

The acquisition was structured with an initial C$5.3 million cash payment, 1.18 million Magna common shares valued at C$2 million, a deferred C$2 million cash payment due by December 31, 2026, and up to C$24 million in contingent milestone payments.

Magna CEO Jason Jessup described the acquisition as a transformational milestone, positioning the company as one of Canada’s newest copper-producing miners. "Magna now owns and operates a producing copper mine and four additional permitted, past-producing copper, nickel, and precious metal projects in the Sudbury region, along with a portfolio of exceptional exploration properties," he stated.

As part of the deal, Magna has assumed C$9.9 million in reclamation liabilities. KGHM will retain a 4% net smelter return royalty on new discoveries at specific exploration sites, with Magna holding a buy-back right on 3% of the royalties for predetermined cash considerations.

To support the acquisition, Magna secured a letter of credit facility with Fédération des caisses Desjardins du Québec, allowing it to obtain letters of credit up to $12 million. The facility is secured against all present and future personal property of the company under an omnibus general security agreement.