Nickel and copper explorer Magna Mining has closed the acquisition of Lonmin Canada (Loncan), handing the company the Denison project in Sudbury, Ontario.
Magna acquired Loncan for C$16-million, comprising a closing payment of C$13-million and a deferred payment of C$3-million, from Sibanye-Stillwater.
The deferred payment is payable on or before the 12-month anniversary of the closing of the acquisition.
The Denison project is 37 km east of Magna’s Shakespeare and covers the past-producing Crean Hill mine, which operated for more than 80 years. The mine’s past production totalled 20.3-million tons, grading 1.3% nickel, 1.1% copper and 1.6 g/t platinum, palladium and gold.
In 2018, subsequent to the mine closing, Loncan entered into an agreement with Vale Canada regarding the transfer and development of the Denison project. Magna has inherited the existing agreements with Vale Canada, including access rights and certain net smelter return royalties.