Magna Mining Inc. Announces Non-Binding Memorandum of Understanding for Proposed Joint Venture Arrangement with Mitsui & Co. for Shakespeare Mine
Magna Mining Inc. Announces Non-Binding
Memorandum of Understanding for Proposed
Joint Venture Arrangement with Mitsui & Co.
for Shakespeare Mine
Toronto, Ontario--(Newsfile Corp. - January 31, 2022) - Magna Mining Inc. (TSXV: NICU) ("
Magna
" or
the "
Company
") is pleased to announce that it has entered into a non-binding memorandum of
understanding ("
MOU
") with Mitsui & Co., Ltd. ("
Mitsui
"), whereby Magna and Mitsui will discuss the
possibility of Mitsui's acquirement of a 10 to 12.5% interest in Magna's Shakespeare Mine in exchange
for cash consideration ranging between $8 million to $10 million on such terms as to be further
negotiated between the parties (the "
Transaction
"). In connection with the Transaction, it is expected
that the parties will enter into a joint venture agreement to jointly pursue the development of the
Shakespeare Mine, with Magna being the operator of the Project (the "
Joint
Venture
" or "
JV
").
Magna Mining CEO Jason Jessup commented, "This MOU is the beginning of what we hope will be a
long-term partnership between Magna Mining and Mitsui, the objective of which is to create the next
nickel producer in the world-class nickel mining region of Sudbury, Ontario. The signing of an MOU with
a global trading and investment company of Mitsui's stature underlines the strategic importance of our
Shakespeare Mine and the growth potential of our company. We anticipate that coupling our operational
and geological expertise with Mitsui's balance sheet strength is a perfect combination in furtherance of
advancing the Shakespeare Mine into production and developing a significant nickel producing
company."
The MOU is limited to 2590 hectares of the more than 18,000-hectare Shakespeare Project (see Figure
1). The MOU property covers the location of the existing Shakespeare deposit, the proposed location of
the Shakespeare open pit mine, mill, tailings storage facility and immediately adjacent claims.
The
remainder of the Shakespeare Project and regional exploration targets, such as the P-4 Discovery, will
remain 100% owned by Magna.
Each participant in the JV will retain the offtake right for the amount of the products (including nickel,
copper and/or other by-products) from the Shakespeare Mine pro-rata to their ownership percentage in
the JV. In addition to the 10 to 12.5% interest to be acquired in the Transaction, Magna and Mitsui shall
evaluate and discuss cooperatively, the potential for Mitsui to acquire an additional 12.5% to 15% stake
in the JV prior to the start of construction, on terms and valuation mutually agreed upon by the Parties.
The parties anticipate entering into a definitive purchase and joint venture agreement setting out in more
detail the proposed terms of the Transaction.
Figure 1. Map Identifying the Portion of the Shakespeare Project Covered Under the MOU
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/8002/112103_74de19cd0464dbbf_002full.jpg
.
The Transaction is subject to a number of conditions including, but not limited to: (i) completion of due
diligence by Mitsui, (ii) the parties negotiating and executing definitive agreements on terms mutually
agreed upon by the parties, and (iii) receipt of all regulatory approvals and third-party consents, including
the approval of the TSX Venture Exchange.
Magna cautions that there is no assurance that the MOU will result in the completion of the Transaction,
or, if the Transaction is undertaken, as to its terms or timing.
ADVISORS
Desjardins Capital Markets is acting as financial advisor and Bennet Jones LLP is acting as legal
counsel to Magna.
ABOUT MITSUI & CO.
Mitsui & Co., Ltd. (8031: JP) is a global trading and investment company with a diversified business
portfolio that spans approximately 63 countries in Asia, Europe, North, Central & South America, The
Middle East, Africa and Oceania.
Mitsui has about 5,600 employees and deploys talent around the globe to identify, develop, and grow
businesses in collaboration with a global network of trusted partners. Mitsui has built a strong and
diverse core business portfolio covering the Mineral and Metal Resources, Energy, Machinery and
Infrastructure, and Chemicals industries.
For more information on Mitsui & Co.'s businesses visit,
www.mitsui.com
.
ABOUT MAGNA MINING INC.
Magna is an exploration and development company focused on sulphide nickel, copper and PGM
projects in the Sudbury region of Ontario, Canada. The Company's flagship asset is the past producing
Shakespeare Mine, which has major permits for the construction of a 4500 tonne per day open pit mine,
processing plant and tailings storage facility and is surrounded by a contiguous 180km
2
prospective
land package.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
news release.
For further information, please refer to the Company's SEDAR filings at
www.sedar.com
or visit the
Company's website at
www.magnamining.com
or contact:
Jason Jessup
Chief Executive Officer
or
Paul Fowler, CFA
Senior Vice President
Email:
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain information that may constitute "forward-looking information"
under applicable Canadian securities legislation. Forward-looking information includes, but is not
limited to, the expectation that the Company will enter into a definitive agreement in relation to the
Transaction, the terms of the Transaction, the timing and ability of the Company to complete the
Transaction, the timing and ability of the Company to receive necessary regulatory approvals, and the
plans, operations and prospects of the Company. Forward-looking information is necessarily based
upon a number of assumptions that, while considered reasonable, are subject to known and unknown
risks, uncertainties, and other factors which may cause the actual results and future events to differ
materially from those expressed or implied by such forward-looking information. Factors that could
affect the outcome include, among others: future prices and the supply of metals, the future demand
for metals, the results of drilling, inability to raise the money necessary to incur the expenditures
required to retain and advance the Company's properties, environmental liabilities (known and
unknown), general business, economic, competitive, political and social uncertainties, results of
exploration programs, risks of the mining industry, delays in obtaining governmental approvals, and
failure to obtain regulatory or shareholder approvals. There can be no assurance that such
information will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such information. Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information contained in this press release is given as
of the date hereof and is based upon the opinions and estimates of management and information
available to management as at the date hereof. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a result of new information, future events
or otherwise, except as required by law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/112103