Magna Mining raising $45 million for Sudbury operations
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 private placement offering will consist of 18.7 million common shares priced at $2.40 per share, in a move that is expected to raise $45 million. The company said it has offered the agents the option to sell an additional 2.3 million shares at the offering price, potentially generating additional proceeds of $4.99 million. That option can be exercised for up to 48 hours prior to closing, which is expected to occur by September 19, 2025.
On Friday, Magna eased 4.1% or 11 cents to $2.57. The shares trade in a 52-week range of $2.70 and 77 cents.
Earlier this year, Magna reached a deal with a subsidiary of KGHM international Ltd. to acquire a portfolio of base metal assets in the Sudbury Basin in Ontario.
Magna agreed to 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.
As a result, Magna said it 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.
April to June, 2025, was the first full quarter of production from the McCreedy West copper mine under Magna’s operation. Total ore processed in the second quarter was 59,100 tons from the 700 Footwall Copper Zone and 10,945 tons from the Interman Nickel Zone for a combined total of 70,045 tons. The combined ore grade for the quarter was 3.26% copper equivalent (CuEq).
McCreedy West produced 3.05 million pounds of CuEq in the quarter.
In a press release on August 29, Magna said it had intersected 29.2% copper, 0.9% nickel, 53.0 g/t platinum-palladium and gold over 1.0 metres, 140 metres down dip of a previous intersection below the No 3 Zone at the Levack Mine in Sudbury, Ontario.
“Prior to acquiring the Levack Mine in the first quarter of this year, we believed there remained the potential to discover another high-grade copper, nickel and precious metal deposit in the footwall environment of the property,” said Dave King, Magna’s Senior Vice-President, Exploration and Geoscience. He said the latest drill results appear to confirm the company’s belief that the prospective exploration environment at Levack remains under-explored.
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