Expansion-minded Magna Mining has raised $21.85 million through a private placement of shares to advance its mining and exploration projects in Sudbury.

In a Nov. 5 press release, Magna said it intended to use the proceeds from the sale to fund its development efforts in the Sudbury Basin and for general corporate purposes.

Magna’s two largest shareholders, Dundee Capital Corp. and Hawke’s Point, a subsidiary of TFG Asset Management UK LLP, participated in this fundraising. The two investors hold approximately 22 percent and 10 percent of Magna’s shares, respectively.

With management ties dating back to FNX Mining, a small, highly successful Sudbury mining company in the 2000s, Magna’s business model is to acquire local producing mines, make new discoveries and bring them back into production. Crean Hill, a former Inco mine, is currently currently being tested on the way back to production.

Compared to FNX, Magna will instantly become a producer in the basin with its September acquisition of the McCreedy West copper mine from KGHM International in September, as well as two mines in care and maintenance and five exploration properties that the Magna team knows well. Magna hopes to finalize the deal for these properties by the end of the year. The properties were considered non-core assets by the Polish mining company.

The company’s short-term goal is to custom mill and sell ore to major miners in Sudbury. But Magna has a valuable asset in Shakespeare, west of Sudbury, near the village of McKerrow, where there is permission to build a 4,500 tonne per day processing plant, if the company decides to build one. a. In Shakespeare, the company also has a mining project which is at the feasibility stage.

In an online interview with Mining Network, Magna CEO Jason Jessup said the company expects to have three to four mines – McCreedy West, Levack, Crean Hill and possibly Podolsky – operational within five years.

“I think we have the potential to have, over the next four years … one mine per year coming into production,” he said.

Jessup said there is enough potential for mining growth in Sudbury over the next decade for Magna to become the “next big Canadian base metals mining company”, as a producer of nickel, copper and metals precious.

Earlier this week, Magna announced the success of its drilling program at Shakespeare in discovering a new copper zone as part of its regional program. The target area was discovered in early 2024 through prospecting and geophysical surveys. The company said there is no record of historical drilling carried out in this area. The area is just southwest of the old Shakespeare Mine.