Magna Mining Inc · TSX:NICU
Magna Mining — Merger or Acquisition (September 2024)
28 slides from Magna Mining's merger presentation, Sep 18, 2024
Slide 1: A Transformational Acquisition
TSXV: NICU A TRANSFORMATIONAL ACQUISITION Creation of a Copper & Nickel Producing Company www.magnamining.com September [•], 2024
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS DISCLAIMER No Advertisement or Solicitation This presentation is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of these securities in Canada, the United States or any other jurisdiction. No securities commission or si
Slide 3: Cautionary Statements
CAUTIONARY STATEMENTS DISCLAIMER Scientific and Technical Information The scientific and technical information contained in this presentation has been reviewed and approved by Mynyr Hoxha PhD, P.Geo, or by David King, M.Sc, P.Geo, both "Qualified Persons" for the purposes of National Instrument 43-1
Slide 4: Transaction Highlights
TRANSACTION HIGHLIGHTS ACQUISITION OF A MULTI-ASSET PORTFOLIO Purchase of a multi-asset portfolio of Sudbury properties from KGHMI (previously owned & operated by FNX Mining): • Producing Mine: McCreedy West • Care & Maintenance Mines: Levack & Podolsky • Past Producing Mine: Kirkwood • Additional E
Slide 5: Property Locations
PROPERTY LOCATIONS CREATION OF A PRODUCING, HIGH-GROWTH CANADIAN COPPER AND NICKEL MINING COMPANY 5
Slide 6: A Transformational Transaction
A TRANSFORMATIONAL TRANSACTION IMMEDIATE • Anticipated immediate exposure to copper production. PRODUCTION • Cash flow from McCreedy West can help to advance Magna’s Sudbury portfolio. CLEAR PATHWAY • A platform to potentially grow into a meaningful mid-tier producer with multiple producing assets.
Slide 7: McCreedy West
McCREEDY WEST OVERVIEW McCreedy West Underground Mineral Resource Estimate, Dec 31, 2023 • Initially developed by Inco (70’s) and restarted by FNX Mining in Cut-off Grade 2002. NiEq (%) Tonnes Ni % Cu % Co % Pt g/t Pd g/t Au g/t Ag g/t Ni Eq % Indicated • 2023 production of 317,660 tonnes at grades
Slide 8: McCreedy West | 3D Oblique View
McCREEDY WEST | 3D OBLIQUE VIEW Portal Intermain Contact Ni Zone Historical Mining 700 Footwall Cu Zone Cu-Ni Contact Deposit Cu-PGE Footwall Deposit PGE-Cu Footwall Deposit PM Footwall PGE-Cu Zone
Slide 9: McCreedy West | Vertical Section
McCREEDY WEST | VERTICAL SECTION NW Portal SE Historical Mining Intermain 700 Footwall Contact Ni Zone Cu Zone Cu-Ni Contact Deposit Cu-PGE Footwall Deposit PM Footwall PGE-Cu Footwall Deposit PGE-Cu Zone 100m Magna Glencore
Slide 10: McCreedy West Mine Recent Drilling
McCREEDY WEST MINE RECENT DRILLING NW Portal SE FNX32885 1.2% Ni, 11.0% Cu, 6.0 g/t Pt+Pd+Au over 7.9 m FNX32935 0.4% Ni, 4.8% Cu, 37.5 g/t FNX33075 Pt+Pd+Au over 1.9 m 2.6% Ni, 0.7% Cu over 11.0 m FNX33141 1.0% Ni, 1.7% Cu, 11.6 g/t Pt+Pd+Au over 15.0 m FNX33032 FNX33023 0.5% Ni, 9.0% Cu, 14.2 g/t
Slide 11: McCreedy West Exploration Potential
McCREEDY WEST EXPLORATION POTENTIAL NW SE Portal Intermain Contact Ni Zone 700 Footwall FNX30678 0.0% Ni, 30.3% Cu, Cu Zone 4.0 g/t Pt+Pd+Au over 0.6 m PM Footwall FNX3255 2.2% Ni, 0.2% Cu, PGE-Cu Zone over 3.3 m FNX30373 3.2% Ni, 1.4% Cu, 0.0 g/t Pt+Pd+Au 100m over 1.5 m
Slide 12: McCreedy West | Levack Longitudinal Section
McCREEDY WEST | LEVACK LONGITUDUNAL SECTION SW NE McCreedy West Mine Levack Mine Portal Main Shaft 1600 Level Haulage Drift 2650 Level 3650 Level To Craig Mine 250m Cu-Ni Contact Deposit Cu-PGE Footwall Deposit PGE-Cu Footwall Deposit
Slide 13: Levack | Overview
LEVACK | OVERVIEW OVERVIEW • Historical records indicate that the mine produced 60 million tonnes of ore between 1937 and 1997, grading 1.3% Cu, 2.0% Ni, and 1.5 g/t Pt + Pd + Au. • FNX Mining re-started production in 2006 until the end of 2008. • Morrison Deposit (Levack Footwall) was discovered in
Slide 14: Levack | Overview
LEVACK | OVERVIEW SW Main Shaft Contact NE SW Main Shaft NE Ni Zones Contact Ni Zones Morrison Footwall Cu - Morrison PGE Deposit Footwall Cu - PGE Deposit 250m 250m Longitudinal Section Looking Northwest Vertical Section Looking Northeast
Slide 15: Levack | Exploration Upside
LEVACK | EXPLORATION UPSIDE Keel Zone FNX20131 3.7% Ni, 5.5% Cu, FNX6616 1.7 g/t Pt+Pd+Au 0.3% Ni, 31.0% over 7.3 m Cu, 12.4 g/t Pt+Pd+Au over 1.4 m No. 3 FW Zone FNX6616 2.1% Ni, 12.3% Cu, 62.1 g/t Pt+Pd+Au over 1.8 m Morrison Footwall Cu -PGE Deposit 250m Source: Technical Information Report McCre
Slide 16: Podolsky
PODOLSKY OVERVIEW • Explored and developed intermittently since 1971. • Whistle open pit developed and mined by Inco through the 1980s and 1990s producing 5.7M tons. Podolsky Mine Historical Resource Estimate, Dec 31, 2022 • FNX explored and developed Podolsky during the 2000’s reaching Tonnes Depos
Slide 17: Podolsky | Exploration Upside
PODOLSKY | EXPLORATION UPSIDE SW Portal NE Main Shaft Whistle Pit Contact North Zone Ni Zones Gabbro Zone 100m 2450 level 2000 Zone
Slide 18: Kirkwood | Overview
KIRKWOOD | OVERVIEW OVERVIEW • Located west of Vale’s producing Garson mine. • Covers an area of 1,228 acres (497 ha) held under patented parcels HISTORY & PAST PRODUCTION including mineral rights. • Surface rights belong to Vale and private individuals / corporations. • “Brownfield” asset, key infr
Slide 19: Other Exploration Properties
OTHER EXPLORATION PROPERTIES Falconbridge Footwall - Covers an area of 3981 acres (1611 ha) and includes patented include mineral rights. The property is part of the Option and Joint Venture Agreement with Glencore (Glencore 18.59%). Northwest Foy Property - Covers an area of 2,066 acres (836 ha) an
Slide 20: Pro Forma Capital Structure
PRO FORMA CAPITAL STRUCTURE 1%, KGHM (1) 10% Mgmt & Pro Forma Capital Structure Directors Current Shares Issued and Outstanding 170,486,212 (1) Plus: Newly Issued Shares 1,709,402 Pro Forma Basic Shares Outstanding 172,195,614 53% Institutional 35% Retail Plus: Options & RSU's 10,600,800 Plus: Warra
Slide 21: Appendix: Mining for Our Future
APPENDIX MINING FOR OUR FUTURE TSXV: NICU Jason Jessup, CEO Paul Fowler, Senior Vice President Jason.Jessup@magnamining.com Paul.Fowler@magnamining.com www.magnamining.com
Slide 22: Structure Minimizes Equity Dilution
STRUCTURE MINIMIZES EQUITY DILUTION Consideration Breakdown (C$ millions) Funding Summary (C$ millions)1 Cash on Closing $5.3 Term Loan Facility1: • Term: Demand (max tenor 3 years) • Repayment: $2M annually; $4M Bullet $10 • Pricing: c. 8% at close Shares of Magna Mining $2 • Hedging: 50% of copper
Slide 23: Management
MANAGEMENT Jason Jessup, MBA - CEO & Director Jason has over 25 years of experience in the mining industry comprising operations management, corporate development and project evaluation. Formerly FNX Mining, Sandstorm Gold, Premier Royalty, and INCO. Paul Fowler, CFA - Senior Vice President Paul is
Slide 24: Relevant Asset Level Experience
RELEVANT ASSET LEVEL EXPERIENCE MANAGEMENT Jason Jessup, MBA Jason Jessup managed operations at McCreedy West and Levack for 4 years, when they were CEO & Director owned by QuadraFNX, . Jeff Huffman, MBA, PMP Jeff Huffman had multiple roles at McCreedy West and Levack, both included Mine General COO
Slide 25: Directors and Strategic Advisors
DIRECTORS AND STRATEGIC ADVISORS Ve r n Ba k e r, P.Eng., MBA C h a i r m a n Vern has +30 years of experience in the mining sector. He is currently the CEO of Jaguar Mining (TSX), previously served as General Manager of Goldcorp’s Cerro Negro Mine, VP Operations at FNX Mining, and President of Dulu
Slide 26: Acquired Mineral Resources
ACQUIRED MINERAL RESOURCES NI 43 101 MINERAL RESOURCE ESTMATE 1 McCreedy West Underground Mineral Resource Estimate, Dec 31, 2023 Cut-off Grade Tonnes Ni % Cu % Co % Pt g/t Pd g/t Au g/t Ag g/t Ni Eq % NiEq (%) Indicated 1.10 9,345,000 0.89 1.30 0.024 0.96 1.10 0.45 5.28 2.02 Inferred 1.10 123,000 1
Slide 27: Acquired Mineral Resources
ACQUIRED MINERAL RESOURCES MCCREEDY WEST NI 43 101 MINERAL RESOURCE ESTMATE BY ZONE 1 700 Zone Cut-off Grade Tonnes Ni % Cu % Co % Pt g/t Pd g/t Au g/t Ag g/t NiEq % NiEq (%) Indicated 1.1 5,230,000 0.7 1.92 0.014 1.08 1.17 0.57 6.48 2.16 Inferred 1.1 63,000 1.63 1.23 0.04 0.4 0.43 0.1 0.82 2.43 PM
Slide 28: Notes on McCreedy West and Historical Mineral Resources
NOTES ON McCREEDY WEST AND HISTORICAL MINERAL RESOURCES McCreedy West Property Mineral Resource Estimate Notes: 1. The effective date of the McCreedy West Property Mineral Resource Estimate (MRE) is December 31, 2023. This is the close out date for the final mineral resource models and mine out mode
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