Magna Mining (TSX-V:NICU) Inc. has announced an offering of up to 6,666,667 flow-through common shares (FT Shares) at a price of $0.45 each, for total gross proceeds of up to $3 million.
The FT shares will be offered by way of a best efforts non-brokered private placement to 'accredited investors' resident in the provinces of Canada.
The company said the gross proceeds of the offering will be used to fund the advancement of Magna's exploration activities at its mineral projects located in the Sudbury region of Ontario, through the incurrence of expenses that are eligible 'Canadian Exploration Expenses; which will also qualify as 'flow-through mining expenditures' within the meaning of subsection 127(9) of the Income Tax Act (Canada) and, for subscribers resident in Ontario, will be eligible for the 5% Ontario Focused Flow-Through Share Tax Credit pursuant to the Ontario Taxation Act.
READ: Magna Mining reports a new nickel-copper-PMG discovery at its Shakespeare project in Ontario
In connection with the offering, Magna Mining (TSX-V:NICU) said it may pay certain arm's length persons finder's fees (or similar fees) in the form of cash or securities of the company.
The closing of the offering is anticipated to occur on or around October 19, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange. All securities issued under the offering will be subject to a statutory hold period in Canada expiring four months and one day from the closing date.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
Magna Mining 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 180 square kilometre prospective land package.
Contact the author at jon.hopkins@proactiveinvestors.com