Explorer and developer Magna Mining on Tuesday announced the acquisition of Lonmin Canada from Sibanye-Stillwater and Wallbridge Mining for C$16-million, handing the company the Denison project, in Sudbury, Ontario.
CEO Jason Jessup said that the closing of the transaction would be transformative for Magna and had several potential synergies with the company’s fully permitted, advanced stage Shakespeare project.
The Denison project is 37 km east of 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 tonnes, 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 Limited regarding the transfer and development of the Denison project. Magna would inherit the existing arrangement with Vale, including access rights and the net smelter return royalty.
In October 2019, Wallbridge earned a 20% interest in the project and was appointed as operator. These agreements with Wallbridge will cease upon Magna buying the project.
To fund the acquisition, Magna announced a private placement to raise C$20-million. The placement would close on August 30.