Business
Magna Mining Closes C$18 Million Private Placement of Flow-Through Shares and Common Shares
Sudbury, Ontario--(Newsfile Corp. - January 25, 2023) - Magna Mining Inc. (TSXV: NICU) (the " Cor...
About this update from Magna Mining Inc
[{"type":"text","content":"Magna Mining Closes C$18 Million Private Placement of Flow-Through Shares and Common SharesSudbury, Ontario--(Newsfile Corp. - January 25, 2023) - Magna Mining Inc. (TSXV: NICU) (the \"Corporation\") is pleased to announce that it has closed its previously announced \"best efforts\" private placement of an aggregate of (i) 8,236,914 common shares of the Corporation that will qualify as \"flow-through shares\" (the \"Charitable Flow-Through Shares\") (within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the \"Tax Act\") at a price of $1.815 per Charitable Flow-Through Share for aggregate gross proceeds of approximately $14.95 million; and (ii) 2,681,872 common shares of the Corporation (the \"Common Shares\") at a price of $1.10 per Common Share for aggregate gross proceeds of approximately $2.95 million (together, the \"Brokered Offering\"), including the full exercise of the option granted to the Agents. The Brokered Offering was led by Canaccord Genuity Corp., on behalf of itself and Research Capital Corporation, Paradigm Capital Inc., Desjardins Securities Inc. and BMO Capital Markets (collectively, the \"Agents\"). In addition, the Corporation also sold an additional 45,400 Common Shares at a price of $1.10 per Common Share for aggregate gross proceeds of $49,400 on a non-brokered private placement basis (the \"Non-Brokered Offering\", together with the Brokered Offering, the \"Offering\").The gross proceeds from the issuance of the Charitable Flow-Through Shares will be used by the Corporation to incur eligible resource exploration expenses which will qualify as (i) \"Canadian exploration expenses\" (as defined in the Tax Act), and (ii) as \"flow-through critical mineral mining expenditures\" (as defined in subsection 127(9) of the Tax Act) (collectively, the \"Qualifying Expenditures\"). Qualifying Expenditures in an aggregate amount not less than the gross proceeds raised from the issue of the Charitable Flow-Through Shares will be incurred (or deemed to be incurred) by the Corporation on or before December 31, 2024 and will be renounced by the Corporation to the initial purchasers of the Charitable Flow-Through Shares with an effective date no later than December 31, 2023.The Common Shares sold under the Offering do not qualify as \"flow-through shares\" for the purposes of the Tax Act. The Corporation...