Business
Magna Mining Closes Acquisition of Lonmin Canada Inc.
Sudbury, Ontario--(Newsfile Corp. - November 7, 2022) - Magna Mining Inc. (TSXV: NICU) (" Magn...
About this update from Magna Mining Inc
[{"type":"text","content":"Magna Mining Closes Acquisition of Lonmin Canada Inc.Sudbury, Ontario--(Newsfile Corp. - November 7, 2022) - Magna Mining Inc. (TSXV: NICU) (\"Magna\" or the \"Corporation\") is pleased to announce that it has closed the acquisition of Lonmin Canada Inc. (\"Loncan\"), including the Denison Project and the past producing Crean Hill Ni-Cu-PGE mine (the \"Acquisition\"), pursuant to a share purchase agreement dated August 15, 2022 (the \"Share Purchase Agreement\") among the Corporation, Loncan, each of the shareholders of Loncan and Sibanye UK Limited, as shareholder representative.Under the terms of the Share Purchase Agreement, Magna acquired 100% of the issued and outstanding shares of Loncan, whose core asset is the Denison Project, in exchange for an aggregate purchase price of $16 million comprised of a closing payment of $13 million in cash (the \"First Payment\") and a deferred payment of $3 million (the \"Deferred Payment\") payable pro rata to each shareholder of Loncan (the \"Vendors\"). The Deferred Payment is payable on or before the 12-month anniversary of the closing of the Acquisition. The Corporation will use commercially reasonable efforts to settle the Deferred Payment in cash, but may, at its option, settle the Deferred Payment in common shares of the Corporation priced at the time of issue in accordance with the rules of the TSX Venture Exchange (the \"TSXV\"). As ongoing security pending the settlement of the Deferred Payment, the Corporation has granted a pledge of the shares of Loncan in favour of the Vendors. The Corporation inherited Loncan's existing commercial arrangements with Vale Canada Limited, including access rights and certain net smelter return royalties. Certain other arrangements, including Loncan's joint venture arrangements with Wallbridge Mining Company Limited, terminated concurrently with the completion of the Acquisition.In connection with the closing of the Acquisition, an advisory fee is payable to Desjardins Capital Markets in the form of a cash payment of $100,000 plus 314,564 common shares of the Corporation (the \"Advisory Fee Shares\"), valued at approximately $100,000 at a deemed price of $0.3179 per Advisory Fee Share. The Advisory Fee Shares are subject to a four month and one day statutory hold period in accordance with applicable Canadian securities laws. Further details rega...