The acquisition value consists of C$5.3 million in money, C$2 million in Magna widespread shares upon closing, a further C$2 million in money due on Dec. 31, 2026, and contingent funds of as much as C$24 million, relying on future milestones.
Magna can also be in discussions for a C$10 million time period mortgage and a C$10 million letter of credit score facility, with Fédération des caisses Desjardins du Québec, a subsidiary of Desjardins Group, to assist the deal.
Magna will take possession of McCreedy West, an lively copper mine that produced 317,660 tonnes of ore in 2023, with copper grades of 1.59%. The mine additionally yielded nickel, cobalt, platinum, palladium, gold and silver. As well as, the Levack mine, which has been on care and upkeep since 2019, can be evaluated for a possible restart, given its near-surface high-grade nickel and copper zones. The Podolsky mine, inactive since 2013, has mining potential in its north zone and nickel ramp deposit.
“We’re not solely buying a producing mine. We imagine that there’s important mineral useful resource potential remaining and the sale belongings have distinctive exploration potential,” CEO Jason Jessup stated in a information launch. “This acquisition creates a transparent pathway to realizing our acknowledged aim of getting three or extra producing mines inside three to 5 years.”
The deal is structured as a share buy, with Magna buying the entire excellent shares of Mission Nikolas from FNX Mining, a KGHM subsidiary. The transaction is topic to regulatory approvals, together with from the TSX Enterprise Change, and is predicted to shut by late 2024 or early 2025.