Magna Mining Acquires Additional Critical Mineral Exploration Assets in the Sudbury Basin Mining District
Magna Mining Acquires Additional Critical
Mineral Exploration Assets in the Sudbury
Basin Mining District
Sudbury, Ontario--(Newsfile Corp. - December 18, 2024) - Magna Mining Inc. (TSXV: NICU) (OTCQB:
MGMNF) (FSE: 8YD) ("Magna" or the "Company") is pleased to announce that it has entered into a
definitive asset purchase agreement dated December 18, 2024 (the "Agreement") with NorthX Nickel
Corp. ("NorthX") (CSE: NIX) to acquire a portfolio of base metals assets ("Sudbury Properties") located
in the Sudbury Basin (the "Transaction").
Jason Jessup, CEO of Magna, stated "We are pleased to announce the acquisition of these exploration
properties as we continue to grow our presence in the Sudbury Basin. The properties announced today
compliment the currently owned and pending KGHM acquisition properties and our exploration team
believes they have high potential for new discovery. Many of these properties are located in the footwall
of known Sudbury deposits, within prospective geological environments and have not been thoroughly
explored. This acquisition is another example of how we continue to execute our growth strategy in a
capital efficient manner with minimal dilution to shareholders."
Figure 1:
Location of NorthX Sale Assets, Magna Mining Existing Properties, KGHM
Acquisition Assets, and Key Sudbury Infrastructure
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Property Descriptions
The property portfolio includes both past-producing properties (Parkin, Wisner), as well as several
exploration properties mainly in the footwall of the Sudbury Igneous Complex (SIC) contact, and totaling
>30,000 Ha (Figure 1). Magna believes these properties have significant exploration potential
remaining, including offset dyke environments at Trill and Parkin, contact Ni-Cu mineralization at Windy
Lake, and several properties in the footwall environment.
The Parkin property covers more than 9 kilometres of the Parkin offset, northeast of the Podolsky Mine
property. The property hosts the historical Milnet mine with past production of 157,000 tons grading
1.5% Ni, 1.5% Cu, and 6.2 g/t Pt+Pd+Au, and the high-grade Milnet 1500 Zone, with drillhole
intersections up to 4.1% Ni, 0.6% Cu and 4.3 g/t Pt+Pd+Au over 8.0 metres. Diamond drilling in 2015-
2016 on the on Wallbridge-Lonmin Parkin JV expanded on known near surface mineralization, including
intersections up to 1.2% Ni, 1.5% Cu and 2.2 g/t Pt+Pd+Au over 24.3 metres and 1.4% Ni, 1.0% Cu and
1.6 g/t Pt+Pd+Au over 7.5 metres.
Several properties host known exploration targets within Sudbury Breccia units in the footwall of the
Sudbury Igneous Complex (SIC), including the Wisner, Blezard, Frost Lake and Creighton South
properties. The Wisner property historically produced 295,000 tonnes grading 0.9% Cu and 4.1 g/t
Pt+Pd+Au from the surface Broken Hammer Zone. The Blezard and Creighton South properties cover
portions of the footwall environment near the known Blezard and Creighton contact deposits, which have
measured and indicated resources of 7.9 million tonnes grading 1.0% Ni, 0.7% Cu and 6.2 million
tonnes grading 4.5% Ni, 3.3 % Cu, respectively (Technical Report Summary, Sudbury Property, Vale
2021). Surface samples at Blezard have returned assays up to 4.5% Cu, 0.6 % Ni and 1.8 g/t Pt+Pd+Au.
The Creighton South and Blezard properties cover a portion of the South Range Breccia Belt (SRBB).
The SRBB is underexplored on these properties and is known to host significant deposits including the
Frood-Stobie complex (Figure 2). Similarly, the Frost Lake property hosts known Sudbury breccia
mineralization, with near surface drillhole intersections including 0.9 g/t Pi+Pd+Au over 48.4 metres.
The Magna exploration team will work to compile and interpret the immense amount of data that exists
on these properties with the goal of identifying and testing the highest priority exploration targets. Not all
properties are 100% NorthX ownership, and several properties are subject to underlying joint ventures,
agreements, and royalties.
Transaction summary
The Transaction will be completed pursuant to the Agreement and is structured as an asset
purchase transaction whereby Magna will acquire all of NorthX's legal and beneficial interest in the
Sudbury Properties. The purchase price is comprised of:
Magna paying to NorthX ONE DOLLAR (C$1.00) cash payable at closing;
Magna will assume all liabilities of NorthX with respect to the Broken Hammer Project Mine
Closure Plan, including lodging financial assurance with the Ministry of Mines in an amount of
approximately C$481,629 at closing;
NorthX providing Magna C$500,000 cash payable at closing to cover Broken Hammer closure
financial assurance;
Magna will assume certain liabilities with respect to the Sudbury Properties, including acting as the
operator of joint ventures, advanced net smelter return (NSR) royalty payments, and annual work
commitments.
The Transaction is subject to satisfaction of customary closing conditions including the receipt of all
required third party consents and regulatory approvals. The Transaction is expected to close by the end
of the first quarter of 2025.
Figure 2:
Plan View showing the Location of the South Range Breccia Belt in Relation to the
Blezard, Kirkwood and Falconbridge Footwall Properties
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Qualified Person
The technical information in this press release has been reviewed and approved by David King, M.Sc.,
P.Geo. Mr. King is the Senior Vice President, Exploration and Geoscience for Magna Mining Inc. and is
a qualified person under Canadian National Instrument 43-101.
About Magna Mining Inc.
Magna Mining is an exploration and development company focused on nickel, copper and PGM projects
in the Sudbury Region of Ontario, Canada. The Company's flagship assets are the past producing
Shakespeare and Crean Hill Mines. The Shakespeare Mine is a feasibility stage project which has
major permits for the construction of a 4,500 tonne per day open pit mine, processing plant and tailings
storage facility and is surrounded by a contiguous 180km
2
prospective land package. Crean Hill is a
past producing nickel, copper and PGM mine with a technical report dated July 2023. Additional
information about the Company is available on SEDAR (
www.sedar.com
) and on the Company's
website (
www.magnamining.com
).
For further information, please contact:
Jason Jessup
Chief Executive Officer
or
Paul Fowler, CFA
Senior Vice President
705-482-9667
Email:
Cautionary Statement
This press release contains certain forward-looking information or forward-looking statements as
defined in applicable securities laws. Forward-looking statements are not historical facts and are subject
to several risks and uncertainties beyond the Company's control, including statements regarding the
Company's acquisition of NorthX's interest in the Sudbury Properties; the ability to satisfy closing
conditions contemplated in the Agreement, including receipt of all required third party consents and
regulatory approvals, and build new or maintain existing relationships with joint venture partners,
communities and other stakeholders; the economic, exploration and production potential of the Sudbury
Properties; and statements regarding growth strategy, beliefs, plans, expectations, or intentions of the
Company. Resource exploration and development is highly speculative, characterized by several
significant risks, which even a combination of careful evaluation, experience and knowledge may not
eliminate. Several factors could cause actual results to differ materially from the results discussed in the
forward-looking statements. All forward-looking statements herein are qualified by this cautionary
statement. Accordingly, readers should not place undue reliance on forward-looking statements. The
Company undertakes no obligation to update publicly or otherwise revise any forward-looking
statements whether as a result of new information or future events or otherwise, except as may be
required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy
of this press release.
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