Magna Mining Inc. [NICU-TSXV, MGMNF-OTCQB, BYD-FSE] said it has struck a deal with a syndicate of agents in connection with a best-efforts private placement offering with proceeds earmarked for the company’s copper, nickel and Platinum Group metal (PGM) projects in Sudbury, Ont. The offering will consist of up to $15 million aggregate principal amount of unsecured convertible debentures, issued in ordinary multiples of $1,000, less an original issue discount of 2.0% of the principal amount of the debentures. It will also consist of up to 6.45 million common shares, priced at $1.55 per common share, generating additional gross proceeds of $10 million.
The company has granted the agents an option to increase the size of the offering by up to 15% of the number of offered securities. That option can be exercised for up to three business days prior to closing, which is expected to occur on February 27, 2025.
The principal amount of the convertible debentures will bear interest at a fixed rate of 10% annually, payable in cash quarterly in arrears, and will mature on the date that is four years after the closing date. The convertible debentures will be issued pursuant to the terms of a debenture indenture to be entered into by the company on or about the closing date.
The principal amount of each convertible debenture (excluding the amounts attributed to the OID) will be convertible, at the election of the holder, into common shares at a conversion price of $2 per common share at any time until the earlier of (i) the business day preceding the maturity date; and (ii) the date of repayment in full of the principal amount of the convertible debentures and all accrued and unpaid interest.
Magna Mining was in the news recently when the company said it has struck a deal with a subsidiary of KGHM international Ltd. to acquire a portfolio of base metal assets in the Sudbury Basin in Ontario.
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