(Kitco News) - On Tuesday, Magna Mining (TSXV: NICU) announced that the company has entered into a definitive share purchase agreement to acquire 100% of Lonmin Canada ("Loncan"), including the Denison project and the past producing Crean Hill Ni-Cu-PGE mine.
In its press-release, the company said that the Crean Hill mine operated during three separate periods, from 1906 to 2002, with past production totaling 20.3 Mt grading 1.3% Ni, 1.1% Cu, 1.6 g/t Pt+Pd+Au. The Crean Hill mine is located 37km east of the company’s Shakespeare project in the Sudbury mining region.
"The Denison project has potential to provide feed to extend the life of mine at the Shakespeare mine or operate in the near-term through toll milling or a combination of both," Magna said.
The company added that the acquisition will be completed pursuant to the terms of the purchase agreement entered into between the company, Loncan and the current shareholders of Loncan, being Sibanye UK Limited, Wallbridge Mining Company Limited and certain other minority shareholders of Loncan.
According to the company’s statement, the aggregate purchase price for the outstanding shares of Loncan is equal to $16,000,000, comprised of a closing payment of $13,000,000 in cash and a deferred payment of $3,000,000, payable pro rata to the vendors.
CEO Jason Jessup stated, “The Crean Hill mine was a significant producer in the Sudbury basin for more than 80 years and we believe the Denison project has potential to add tremendous value through development of the remaining historical mineral resources and additional exploration on the property. The successful closing of this transaction will be transformative for Magna and has several potential synergies with Magna’s fully permitted, advanced stage Shakespeare project.”
Magna Mining is an exploration and development company focused on sulphide nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada. The company’s flagship asset is the past producing Shakespeare mine which has major permits for the construction of a 4500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km2 prospective land package.
