TSX-V-listed Magna Mining has completed its acquisition of a portfolio of base metals assets in the Sudbury basin from an affiliate of KGHM International, including the producing McCreedy West copper mine and past-producing Levack, Podolsky, and Kirkwood mines.

The acquisition, which also includes the Falconbridge Footwall (81.41%), Northwest Foy (81.41%), North Range, and Rand exploration assets, was finalised under the terms of a share purchase agreement dated September 11, 2024. Through the agreement, Magna acquired 100% of Project Nikolas Company, which holds the purchased assets.

The total  price comprised an initial C$5.3-million cash payment, 1.18-million Magna common shares valued at C$2-million, a deferred C$2-million cash payment due by December 31, 2026, and up to C$24-million in contingent milestone payments.

Magna CEO Jason Jessup said the acquisition was a transformational milestone for the company. “Magna now owns and operates a producing copper mine and four additional permitted, past-producing copper, nickel, and precious metal projects in the Sudbury region, along with a portfolio of exceptional exploration properties," he stated. 

"Magna is proud to take its place as one of the newest copper producing mining companies in Canada, and we believe we are positioned to grow substantially over the coming years.”

As part of the transaction, Magna has assumed PNCI’s liabilities, including C$9.9-million in reclamation liabilities. KGHM will retain a 4% net smelter return royalty on new discoveries at certain exploration properties, with Magna holding a buy-back right on 3% of the royalties for various cash considerations.

To support the acquisition, Magna entered into a letter of credit facility with Fédération des caisses Desjardins du Québec, allowing it to obtain letters of credit up to $12-million. The facility is secured against all present and future personal property of the company under an omnibus general security agreement.