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Magna Mining Inc. Announces Non-Binding Memorandum of Understanding for Proposed Joint Venture Arrangement with Mitsui & Co. for Shakespeare Mine
Toronto, Ontario--(Newsfile Corp. - January 31, 2022) - Magna Mining Inc. (TSXV: NICU) (" Ma...
About this update from Magna Mining Inc
[{"type":"text","content":"Magna Mining Inc. Announces Non-Binding Memorandum of Understanding for Proposed Joint Venture Arrangement with Mitsui & Co. for Shakespeare MineToronto, Ontario--(Newsfile Corp. - January 31, 2022) - Magna Mining Inc. (TSXV: NICU) (\"Magna\" or the \"Company\") is pleased to announce that it has entered into a non-binding memorandum of understanding (\"MOU\") with Mitsui & Co., Ltd. (\"Mitsui\"), whereby Magna and Mitsui will discuss the possibility of Mitsui's acquirement of a 10 to 12.5% interest in Magna's Shakespeare Mine in exchange for cash consideration ranging between $8 million to $10 million on such terms as to be further negotiated between the parties (the \"Transaction\"). In connection with the Transaction, it is expected that the parties will enter into a joint venture agreement to jointly pursue the development of the Shakespeare Mine, with Magna being the operator of the Project (the \"Joint Venture\" or \"JV\").Magna Mining CEO Jason Jessup commented, \"This MOU is the beginning of what we hope will be a long-term partnership between Magna Mining and Mitsui, the objective of which is to create the next nickel producer in the world-class nickel mining region of Sudbury, Ontario. The signing of an MOU with a global trading and investment company of Mitsui's stature underlines the strategic importance of our Shakespeare Mine and the growth potential of our company. We anticipate that coupling our operational and geological expertise with Mitsui's balance sheet strength is a perfect combination in furtherance of advancing the Shakespeare Mine into production and developing a significant nickel producing company.\" The MOU is limited to 2590 hectares of the more than 18,000-hectare Shakespeare Project (see Figure 1). The MOU property covers the location of the existing Shakespeare deposit, the proposed location of the Shakespeare open pit mine, mill, tailings storage facility and immediately adjacent claims. The remainder of the Shakespeare Project and regional exploration targets, such as the P-4 Discovery, will remain 100% owned by Magna. Each participant in the JV will retain the offtake right for the amount of the products (including nickel, copper and/or other by-products) from the Shakespeare Mine pro-rata to their ownership percentage in the JV. In addition to the 10 to 12.5% interest to be acquired in th...