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What's Magna's Plan for 2023?

What's Magna's Plan for 2023?
Written by
Spencer Duke
Spencer Duke
Published on
April 24, 2023
Read time
3
 min read

Magna Mining (TSXV: NICU, OTC: MGMNF, FRA: 8YD) is an exploration company focused on its Shakespeare flagship project. But this time, spotlights are on the Clean Hill project. Magna Mining provided investors with solid results, notably intercepting 2.4% Ni, 4.3 % Cu, 37.2 g/t Pt + Pd +Au OVER 5.1m.

Company Overview

Magna Mining (TSXV: NICU, OTC: MGMNF, FRA: 8YD)  is an exploration and development company primarily focused on the past producing Shakespeare mine. The Shakespeare Project is a Ni-Cu-PGM project that has been produced in the past and is situated 70 km southwest of Sudbury. The project is conveniently located within driving distance of Sudbury's milling and smelting capabilities and is easily reachable by car from the neighboring Trans Canada highway. Shakespeare has the necessary licenses for building a 4,500 tpd mill and the restart of open pit mining, as well as an existing NI 43-101 resource. This 180 km2 land package has high potential for further discoveries in nickel, copper, and PGM.

The Crean Hill mine is a past-producing underground mine in the world-famous Sudbury Basin nickel district. Crean Hill hosts an existing NI 43-101 resource (completed August 2022). While under the previous ownership of Vale (Inco), the mine was a significant producer of nickel and copper for over 80 years. Historical production at Crean Hill focused on the “contact” style nickel-copper mineralization typical of the Sudbury region. At the same time, more recent exploration on the property by Lonmin Canada Inc. (2003 to 2022) demonstrated the potential for high-grade Pt-Pd-Au mineralization in the footwall of the contact nickel zones where limited drilling has been completed to date. Some highlights about the mine:

-Contained metal (Indicated category) of 500M lbs nickel, 450M lbs copper, and 1.7M oz platinum + palladium + gold,

-High-grade underground Indicated Resource of 14.5 M tonnes at 2.07 % nickel equivalent,

-The resource starts at the surface and could be amenable to open-pit mining as well as near-surface underground mining methods,

-The total indicated resource incorporates mineralization from the contact style Ni-Cu dominated zones, as well as the Pt-Pd-Au rich, low sulfide footwall mineralization,

-Mineralization is well-defined and primarily in the Indicated category from the surface to approximately 1200 m below the surface.

In a recent interview with Proactive, CEO Jason Jessup informed strong results from the Crean Hill mine. Jessup reported high-grade results from the near-surface in the 109 Footwall Zone, showing 0.2% nickel, 0.6% copper, 11.0 g/t platinum + palladium + gold over 95.4 meters in an area still not well understood. The company said the results are encouraging, so a second diamond drill has been brought in to define the near surface 109 Footwall Zone better.

"The assay results reported today demonstrate the near surface potential of the high grade, sulphide rich core of the 109 Footwall Zone, within the overall wider zone of mineralized breccia. The continuity of massive sulphide in the 109 Footwall Zone is not well understood and not currently incorporated into the resource block model, so these results are highly encouraging. On the basis of the results so far from Crean Hill, Magna has mobilized a second diamond drill rig and will be completing several drillholes designed to better define the near surface 109 Footwall Zone. This will allow us to better evaluate and design the surface bulk sample at Crean Hill, which should commence within the next 6 to 9 months."
Jason Jessup, CEO of Magna

Share Structure / Financials 

Magna Mining has high institutional participation. More than half the float (53%) is for institution investments. Furthermore, 13% is detained by management & directors, leaving only 34% to retail investors. 

Regarding the share structure, 160.2M shares are issued and outstanding. Combined with this, 6.9M options and restricted share units are waiting to be exercised. Moreover, 38M warrants are available. On January 10, Magna Mining announced the closing of an $18M private placement. The company issued 8.2M shares qualified at “flow-through shares” at $1.815 and 2.7M shares at $1.10. 

Dundee Corporation (DC-A.TO), an active investor focused on mining with over 30 years of experience making accretive mining investments, has invested $1,499,960 in the offering by subscribing for 1,363,600 common shares. 32,199,918 common shares and 9,259,259 warrants represented about 21.6% of the issued and outstanding common shares previous to the Offering on a non-diluted basis (or approximately 26.2% on a partially diluted basis) were held by Dundee and its affiliates before the offering. After the offering, Dundee and its affiliates now possess or control 33,563,518 common shares and 9,259,259 warrants, corresponding to about 21.0% (or about 25.3% on a partially diluted basis) of the issued and outstanding common shares of Magna Mining.

The stock price trades around $1.05 (April 13th, 2023). Thanks to several positive news, NICU moved from the thirties (July to November 2022) to hit an all-time high of $1.49. 

What You Should Remember 

-Magna Mining holds two past-producing, advanced-stage assets with short timelines for production in North America,

-Shakespeare project: permits for a 4,500 t/d capacity mill, possibility exists to apply for expanded capacity post construction,

-High institutional investment, Dundee Corporation detains about 21% of the shares issued and outstanding,

-Recent $18M financing will help the company to ramp up exploration in 2023.

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