>>21206837Transaction Highlights
Purchase Price: C$5.3 million in cash and $2.0 million of Magna common shares on the closing of the Transaction and C$2.0 million in cash on December 31, 2026, plus future contingent payments of up to C$24.0 million.
Funding: Magna is negotiating a commitment letter for a C$10 million three-year Term Loan facility and a C$10 million Letter of Credit facility with Fédération des caisses Desjardins du Québec (“FCDQ”), a subsidiary of Desjardins Group.
Acquisition Properties: (see Figure 1)
McCreedy West Mine: Currently an operating mine which had 2023 production of 317,660 tonnes at grades of 1.59% copper, 0.23% nickel, 0.01% cobalt, 1.03 g/t platinum, 1.34 g/t palladium, 0.41 g/t gold and 14.05 g/t silver.
Levack Mine: On care and maintenance since 2019 with current activities underground to maintain the ramp, shaft and pumping infrastructure. Shaft access extends to the 2650 Level and ramp access to the 5400 Level. Near surface high grade nickel and copper zones to be evaluated for mine restart.
Podolsky Mine: On care and maintenance since 2013 with both ramp access from surface and shaft access to the 2450 Level. Near surface mining potential in the copper rich North Zone as well as potential to develop the Nickel Ramp deposit.
An extensive exploration property portfolio in the Sudbury Basin; This includes the past-producing Kirkwood Mine and the Falconbridge Footwall, Northwest Foy, North Range and Rand exploration properties.
Pretty decent transaction, for Magna.
