Magna Mining Inc.

Magna Mining Inc. is a junior copper and nickel producer headquartered in Sudbury, Canada, operating primarily in Canada. The company's portfolio consists of 5 projects, comprising 1 operating mine, 1 development, and 3 suspended projects. Key assets include McCreedy West and Crean Hill. The company's business model transformed from exploration and development to a revenue-generating producer following a significant asset portfolio acquisition. Its operational approach focuses on the acquisition, exploration, development, and mining of natural resource properties. A key characteristic of the business model is the strategic utilization of existing third-party infrastructure, demonstrated by an off-take agreement for advanced exploration material and the processing of a bulk sample at an established regional mill. This strategy minimizes capital requirements for new processing facilities and leverages regional operational synergies. The enterprise's asset base was significantly expanded through the purchase of a portfolio that includes a producing operation, several past-producing assets on care and maintenance, and a collection of exploration properties. This structure combines near-term operating cash flow with a pipeline of development and exploration opportunities, providing a diversified approach to growth and risk management within a concentrated operational footprint.

Strategic priorities are centered on integrating newly acquired assets and advancing the existing project pipeline, funded by recent financing and anticipated operating cash flows. The near-term focus includes expanding resources at a recently acquired producing operation through targeted exploration drilling to support mid-term production planning. A key initiative involves advancing a development project as outlined in a 2024 preliminary economic assessment, which contemplates an underground-only operation with mineable resources sold to a third-party processor. Management's approach also includes initiating surface exploration at a past-producing asset to support a potential restart and evaluating the near-surface mining potential at another dormant operation. The company plans to systematically assess the extensive exploration portfolio obtained in a recent transaction while continuing regional exploration near a permitted, past-producing asset. Finalizing a separate asset purchase agreement announced in late 2024 is also a stated objective for the upcoming year, further consolidating its position.

Executive leadership includes a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, and Senior Vice Presidents overseeing technical services and exploration. A new CFO was appointed in October 2024. The company's governance framework includes compensation structures designed to align management and employee interests with shareholder value, utilizing stock options and a fixed restricted share unit plan. The RSU plan, administered by the board, is capped at 3,000,000 common shares and was ratified by shareholders at the June 2024 annual meeting. Stock options granted to officers, directors, and employees typically feature 5-year terms with tiered vesting schedules. The company engages in transactions with related parties, including consulting services provided by entities associated with certain directors and officers, which are disclosed and measured at exchange amounts. Technical oversight for economic studies is conducted by independent qualified persons from external geological and engineering firms, ensuring third-party validation of key project assessments.

The organization's commitment to environmental stewardship is demonstrated by its assumption of approximately $9,900,000 in reclamation liabilities associated with a recent major asset acquisition. The company's approach to social responsibility includes working to establish positive relations and agreements with Indigenous communities to support its operations and development projects, acknowledging the need to manage risks related to Aboriginal title and rights claims. A key initiative in sustainable infrastructure development involves leveraging government funding, having received conditional approval for up to $1,600,000 from the Critical Mineral Infrastructure Fund. This funding is designated to support pre-construction activities for clean energy and transportation infrastructure, including advancing a transmission line, an access road, and studies for grid connection at 2 separate projects. The company operates under various environmental and safety laws and regulations and believes it maintains compliance, while acknowledging the inherent risks of environmental contamination from past mining activities on its properties.

The corporate structure was significantly transformed on February 28, 2025, through the acquisition of all outstanding shares of Project Nikolas Company Inc. from KGHM International Ltd., a transaction that added a portfolio of producing and past-producing assets. This acquisition involved cash, share issuance, deferred payments, and contingent future payments, with the seller retaining a net smelter return royalty on new discoveries with a buy-back provision for the company. In December 2024, the company entered into a definitive asset purchase agreement with NorthX Nickel Corp. to acquire another portfolio of assets, with the transaction expected to close in the first half of 2025. A portion of one of its key projects is held in a joint venture with Glencore, in which the company holds an 83.9% ownership interest. The company's history includes the 2022 acquisition of Lonmin Canada Inc., with the final deferred payment for this transaction being settled in November 2023. To support its reclamation liabilities, the company established a letter of credit facility for up to $12,000,000 with Desjardins, secured against all company assets.