Magna Mining Looks To Raise $16 Million After Positive Drill Results
In a totally unsurprising move, Magna Mining (TSXV: NICU) this morning revealed it is looking to raise funds after having two notable drill hole intersects over the last two weeks. The firm is looking to conduct a financing that will raise gross proceeds of approximately $16.0 million.
The offering is set to include a charitable flow-through component in addition to a common share component. The charitable flow-through offering is set to consist of up to 7.2 million shares of the issuer being sold at a price of $1.815 per each, for gross proceeds of $13.0 million. The non-flow-through portion meanwhile is to consist of 2.7 million shares being sold at $1.10 per each, for gross proceeds of $3.0 million.
No warrants are being offered in connection with the financing.
An over-allotment option also exists, which would see the sale of up to 1.1 million more charitable flow-through units for additional proceeds of $1.95 million.
Proceeds from the offering will see the firm conduct further exploration on its properties, with funds from the common share offering also to be used for general corporate purposes.
The financing is slated to close January 25.
The offering follows the company having two significant drill holes at its Crean Hill project near Sudbury, Ontario. Hole MCR-22-010 released yesterday intersected 0.39% nickel, 0.49% copper, 3.36 g/t platinum, 2.28 g/t palladium and 1.59 g/t gold over 98.26 metres from a depth of 26.55 metres. Last week, the firm hit 4.0% nickel, 0.7% copper, 0.36 g/t platinum and 0.25 g/t palladium over 31.06 metres.
Magna Mining last traded at $1.28 on the TSX Venture.
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