Magna Mining closes first tranche of non-middleman private placement

Magna Mining Inc. is pleased to announce that it has completed the first tranche of its previously announced non-brokered private placement under which the Company sold a total of 5,888,900 flow-through common shares at a price of $ 0.45. ‘share, for a total gross proceeds of approximately $ 2,650,000. The Company intends to finalize another tranche of the Offer in November. The gross proceeds of …

Magna Mining Inc. (TSXV: NICU) (“Magna” or the “Company”) is pleased to announce that it has closed a first tranche of its previously announced non-middleman private placement (the “Offer”), in whereby the Company sold a total of 5,888,900 flow-through common shares at a price of $ 0.45 per share, for total gross proceeds of approximately $ 2,650,000. The Company intends to complete another tranche of the Offer in November.

The gross proceeds of the placement will be used to finance the advancement of Magna’s exploration activities on its mining projects located in the Sudbury region of Ontario, by incurring eligible expenses which are “exploration expenses in Canada”. which will also qualify as “exploration expenses mining expenses” within the meaning of subsection 127 (9) of the Income Tax Act (Canada) and, for policyholders residing in Ontario, will be eligible for the 5% Ontario Focused Flow-Through Share Tax Credit under Ontario Tax Act.

In a follow-up transaction, Dundee Resources Limited, a wholly owned subsidiary of Dundee Corporation (“Dundee“), acquired 5,888,900 common shares of the Company in a private placement following the completion of the initial tranche of the Offer. Following the closing of the initial tranche, Dundee holds, directly or indirectly , 13,482,650 common shares and 3,371,875 warrants to purchase common shares of the Company, representing approximately 19.17% of the issued and outstanding common shares on an undiluted basis, and approximately 22.87% of the shares issued and outstanding on a partially diluted basis.Pursuant to the terms of the Warrants held by Dundee, Dundee may not exercise any portion of the Warrants to the extent that, after giving effect to such exercise, Dundee would beneficially own more than 19.99% of the common shares outstanding immediately after giving effect to such exercise.

Dundee Goodman Merchant Partners (“DGMP“), an affiliate of Dundee, acted as intermediary in connection with the initial tranche of the offering. In consideration of acting as intermediary in connection with the initial tranche, the Company has the intends to issue 198,750 common shares to DGMP at a deemed price of $ 0.40 per share, subject to approval by the TSX Venture Exchange.The Company may pay additional finder’s fees (in the form of a ‘cash or securities) to certain persons dealing at arm’s length in the context of subsequent tranches of the Offer.

Magna hired Canaccord Genuity Corp. (“Canaccord“) To act as its financial advisor for the Offer. In consideration for certain advisory services provided by Canaccord in connection with the Offering, the Company issued 223,750 common shares to Canaccord at a deemed price of $ 0.40 per share.

The securities issued in connection with the closing of the initial tranche of the offering are subject to a hold period under applicable Canadian securities laws which will expire on February 27, 2022. The offering is subject to final acceptance of the offering. TSX Venture Exchange.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “”U.S. Securities Law“) or any state securities law and may not be offered or sold in the United States or to persons in the United States unless it is registered under the US Securities Act and laws on applicable government securities or an exemption from such registration is available.

About Magna Mining Inc.

Magna is an exploration and development company focused on nickel sulfide, copper and MGP projects in the Sudbury area of ​​Ontario, Canada. The Company’s flagship asset is the former Shakespeare Mine, which has major permits for the construction of a 4,500 tonne per day surface mine, processing plant and storage facility. tailings and is surrounded by a contiguous 180 km perimeter2 future land lot.

For more information, please see the Company’s SEDAR filings at or visit the Company’s website at or contact:

Jason Jessup, President and CEO
Paul Fowler, CFA, Senior Vice-President

Telephone: 416 356 8165
Email: [email protected]

Caution Regarding Forward-Looking Statements

This press release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward-looking information includes, without limitation, the terms of the offer, the use of the proceeds of the offer, the timing and ability of the Company to close the offer, and the timing and ability of the Company. to receive the necessary regulatory approvals, and the plans, operations and prospects of the Company. Forward-looking information is necessarily based on a number of assumptions which, although considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events differ materially from those expressed or implied by such forward-looking information. Factors that could affect the result include, but are not limited to: future prices and supply of metals, future demand for metals, drilling results, inability to raise the necessary funds to incur the expenses required to maintain and make advancing the Company’s properties, responsibilities (known and unknown), general affairs, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in l ‘Obtaining government approvals and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Therefore, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based on the opinions and estimates of management and on information available to management as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.


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