BULLETIN V2025-0750
MAGNA MINING INC. ("NICU")
BULLETIN TYPE: Property-Asset or Share Purchase Agreement
BULLETIN DATE: March 12, 2025
TSX Venture Tier 1 Company
TSX Venture Exchange has accepted for filing documentation with respect to an arm's length share purchase agreement (the "Agreement") between Magna Mining Inc. (the "Company"), Project Nikolas Company Inc. (the "Target"), FNX Mining Company Inc. (the "Seller") and KGHM International Ltd. Pursuant to the Agreement, the Company acquired all of the issued and outstanding shares of the Target, an Ontario-based private corporation that holds a portfolio of base metals assets located in the Sudbury Basin mining district (the "Properties") in northern Ontario, Canada.
Under the terms of the Agreement, the aggregate purchase price was approximately CDN$9,300,000, of which a portion was satisfied by the Company on closing by paying CDN$5,300,000 in cash and issuing 1,180,705 common shares of the Company to the Seller. The Company will also be required to make a deferred payment of CDN$2,000,000 in cash on or before December 31, 2026.
Additionally, the Company may make additional milestone payments to the vendor, upon commencement of commercial production on certain Properties, up to a maximum of CDN$24,000,000.
In addition, FNX will retain a 4.0% net smelter returns royalty ("NSR") on new discoveries on certain exploration properties that are part of the Properties. The Company has the right to buy-back 3.0% of these royalties (for a residual 1.0% NSR) at any time for various cash consideration, as more particularly described under the Agreement.
For further details, please refer to the Company's news releases dated September 12, 2024 and February 28, 2025.
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