Magna Mining to Acquire Lonmin Canada for $12.4 Million
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Canadian metal exploration and development company Magna Mining has signed a definitive agreement to acquire Lonmin Canada (Loncan) for a total consideration of C$16 million ($12.4 million).
Under the terms of the agreement, Loncan and its shareholders, including Sibanye UK, Wallbridge Mining, and others, will receive an upfront payment of C$13 million in cash.
In addition, Magna is expected to make deferred payment of C$3 million.
Loncan owns the Denison project and the past-producing Crean Hill nickel-copper-PGM (platinum group metals) mine, both located in the Sudbury basin of Ontario, Canada.
Magna will obtain both operations through the acquisition, which is subject to the satisfaction of certain customary closing conditions, including the approval of the TSXV.
“The Crean Hill Mine was a significant producer in the Sudbury basin for more than 80 years and we believe the Denison Project has the potential to add tremendous value through the development of the remaining historical mineral resources and additional exploration on the property,” said Magna CEO Jason Jessup.
“The successful closing of this transaction will be transformative for Magna and has several potential synergies with Magna’s fully permitted, advanced stage Shakespeare Project,” added Jessup.
The Crean Hill Mine has been operated in three separate periods, between 1906 and 2002, and produced a total of 20.3Mt grading 1.3 percent Ni, 1.1 percent Cu, 1.6 g/t Pt+Pd+Au.
After the mine closing in 2018, Loncan signed an agreement with Vale Canada, for the transfer and development of the Denison project.
As per the agreement, the company is entitled to inherit the existing arrangement with Vale, including access rights and the net smelter return (NSR) royalty.
In October 2019, Wallbridge obtained a 20 percent stake in the project and was appointed as operator. Its agreement with Loncan will be invalid after the closing, said Magna.
Source: NS Energy
About Magna Mining
Magna is an exploration and development company focused on nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada. The company’s flagship asset is the past producing Shakespeare Mine which has major permits for the construction of a 4500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km prospective land package.
To stop by Magna Mining’s website, CLICK HERE
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