Magna Mining (TSX:NICU) has received a C$140 million ($141 million) investment from Peru’s Alpayana to support the development of its mineral projects in Ontario, Canada.
Under a private placement, Alpayana has agreed to buy more than 62.22 million shares of Magna at C$2.25 per share.
The price represents a slight discount to the stock’s last closing price of C$2.35 on the Toronto Stock Exchange.
Upon closing, Alpayana will hold approximately 19.9% of Magna’s outstanding share capital.
Magna said the financing proceeds will be used to advance its projects located in Ontario’s historic Sudbury mining district. The company operates the McCreedy West Copper-Nickel Mine, which has a rich history dating back to the 1970s, and is working on four other projects in the region.
“We are extremely pleased with this proposed strategic investment from Alpayana and welcome them as a major shareholder of Magna,” Jason Jessup, CEO of Magna, says.
The privately owned Alpayana currently operates six underground polymetallic mines, five of which are situated in Peru. Last year, it expanded into Mexico with the acquisition of Sierra Metals.
Jessup says the firm’s operating experience in Peru and Mexico dovetails well with Magna’s “growing production, advanced stage projects, extensive property portfolio, and deep knowledge of the Sudbury Basin in northeastern Ontario.”
Chairman of Alpayana Alejandro Gubbins also notes that “this investment reflects Alpayana’s confidence in Magna’s team and in the exceptional geological endowment of the Sudbury Basin.”
“As a private group with four decades of continuous operations in Latin America, we are proud to extend our long-term, responsible approach to mining into one of the world’s most established districts, and to support Magna as it advances its growth pipeline in the region.”
Magna Mining is focused on its advanced stage copper and nickel projects in Canada.
Write to Jackson Chen at Mining.com.au
Images: Magna Mining
