Magna Mining Inc. has closed its non-brokered strategic private placement financing with Alpayana S.A.C., securing gross proceeds of approximately C$140 million through the issuance of 62,356,682 common shares at C$2.25 per share.

Following the completion of the offering, Alpayana holds a 19.9% ownership interest in the company on both a non-diluted and partially diluted basis. The net proceeds will directly fund the advancement of development activities at the company's mineral projects located in the Sudbury region of Ontario, Canada, as well as support general corporate requirements and working capital needs.

In connection with the transaction, Magna Mining and Alpayana entered into an investor rights agreement that grants Alpayana several governance and participation rights, provided it maintains an ownership threshold of at least 10% in the company. These provisions include the right to participate in future equity financings and top up holdings following certain dilutive issuances to maintain its pro rata ownership interest. Alpayana also gains the right to nominate one director to the board or appoint a board observer when no nominee is serving, alongside the establishment of an advisory technical committee comprised of an equal number of representatives appointed by each organization.

The newly issued shares are subject to a statutory hold period in Canada expiring four months and one day from the closing date. Canaccord Genuity Corp. acted as financial advisor to the company, with Desjardins Capital Markets acting as strategic advisor, and Magna Mining paid an aggregate finder's fee of 2.5% of the gross proceeds in cash. The offering remains subject to final approval from the Toronto Stock Exchange.

The capital injection arrives as Magna Mining continues active operations and technical evaluation across its wider Sudbury asset base. In addition to ongoing production at the McCreedy West Mine, the company has a preliminary economic assessment underway at the Levack Mine and a pre-feasibility study advancing at the Crean Hill Mine.

Read the full announcement: Magna Mining Announces Closing of C$140 Million Strategic Investment by Alpayana