Magna Mining offers $18M private placement of flow-through, common shares

Magna claims proceeds from the financing will be used in 2023 and 2024 exploration program at Crean Hill and Shakespeare. Manga Mining photo

Magna Mining (TSXV:NICU) has entered into an agreement with Canaccord Genuity in connection with a private placement of up to 7.1 million charitable flow-through shares at a price of $1.815 each and up to 2.7 million shares at a price of $1.10 per share, for aggregate gross proceeds of up to approximately $13 million and $3 million respectively. 

In addition, the corporation will grant the agents an option, exercisable within 48 hours before the closing of the offering, to sell up to an additional 1.07 million charitable flow-through shares at the same terms for additional gross proceeds of up to approximately $1.95 million.

The corporation has agreed to pay the agents a cash commission equal to a maximum of 6.0% of the gross proceeds of the offering and a number of broker warrants equal to a maximum of 6.0% of the flow-through and common shares sold pursuant to the offering. 

The offering is expected to close on or about Jan. 25, 2023 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional listing approval of the TSXV exchange.

Earlier this week, Magna announced that drilling at the former Crean Hill nickel mine near Sudbury, Ont., had intersected high-grade platinum group metals. See the details on CMJ.

For more information, visit www.MagnaMining.com.

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