Magna Mining (TSX: NICU) has secured a C$140 million strategic investment from Peruvian mining group Alpayana S.A.C., handing the nickel and copper producer its largest shareholder and a sizeable war chest for development.
Alpayana will buy 62.2 million shares shares at a price of $2.25 each through a non-brokered private placement, leaving it with roughly 19.9% of Magna’s outstanding shares once the deal closes.
Alpayana brings four decades of continuous operations and a string of underground mines across Peru and Mexico, experience chief executive Jason Jessup said dovetails with Magna’s own production and development plans.
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“We are extremely pleased with this proposed strategic investment from Alpayana and welcome them as a major shareholder,” Jessup said, adding that the financing lets the company pursue several growth opportunities at once and accelerate work on its past producing Levack and Crean Hill projects.
Alpayana chairman Alejandro Gubbins cast the deal as an extension of the group’s long term, responsible approach into an established mining district, pointing to confidence in Magna’s team and the region’s geological endowment.
Net proceeds from the investment will fund development across Magna’s asset base along with general corporate and working capital needs.
The shares carry a hold period of four months and one day, and closing remains subject to Toronto Stock Exchange approval.
Magna Mining last traded at $2.35 on the TSX.
