Source: Magna Mining
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  • Magna Mining (NICU) has closed its non-brokered private placement for gross proceeds of $20,014,792.20
  • The company issued a total of 74,128,860 subscription receipts at a price of $0.27 per receipt
  • Each subscription receipt will entitle the holder to receive one common share and one-half of one common share purchase warrant
  • The proceeds from the offering will be held in escrow pending Magna Mining’s successful acquisition of Lonmin Canada Inc.
  • Magna Mining intends to use the net proceeds of the offering to fund the cash component of the purchase price for the acquisition
  • Magna Mining is an exploration and development corporation
  • Magna Mining Inc. (NICU) opened trading at C$0.295

Magna Mining (NICU) has closed its non-brokered private placement for gross proceeds of $20,014,792.20.

The company issued a total of 74,128,860 subscription receipts at a price of $0.27 per receipt.

Each subscription receipt will entitle the holder to receive one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share for a period of three years.

The gross proceeds from the sale of the subscription receipts will be held in escrow by Computershare Trust Company of Canada and released to the corporation upon the satisfaction of certain escrow release conditions, including the satisfaction of all conditions precedent to the closing of the corporation’s acquisition of Lonmin Canada Inc.  If the escrow release conditions are satisfied within 120 days following the closing of the offering, the escrowed funds will be released to the corporation. If the escrow release conditions are not satisfied on or before the deadline or the corporation publicly announces that it does not intend to proceed with the acquisition of Lonmin Canada, the escrowed proceeds, together with interest earned, will be returned on a pro-rata basis to the holders of the subscription receipts, and the receipts will be cancelled.

Magna Mining intends to use the net proceeds of the offering to fund the cash component of the purchase price for the acquisition as well as ongoing exploration and development activities at Loncan’s Denison Project in Ontario.

All securities issued will be subject to a statutory four-month hold period.

Magna Mining will pay a total cash finder’s fee of $738,120 to Paradigm Capital Inc., Canaccord Genuity Corp., Dundee Goodman Merchant Partners, Research Capital Corporation, Lakeshore Securities Inc., Echelon Wealth Partners Inc., and Haywood Securities Inc. as consideration for the provision of certain finder services to the Corporation.

Magna Mining is an exploration and development corporation focused on nickel, copper and PGM projects in the Sudbury Region of Ontario.

Magna Mining Inc. (NICU) opened trading at C$0.295.


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