Exceeding Expectations - McCreedy Generates $300,000 Cash Flow for Magna Mining on First Months' Production

• Magna Mining completed the acquisition of McCreedy West mine on February 2025, and produced 790,000 pounds of copper equivalent in their first month of operations while generating $300,000 in positive cash flow despite expecting losses during the transition period.
• The company raised $33.5 million in early March 2025 through a convertible debenture structure ($23.5 million) and equity ($10 million), with major shareholder Dundee Corp participating significantly in the funding round.
• Magna Mining plans to invest $5-10 million in 2025 for capital development at McCreedy West to open additional workplaces and ramp up production, moving from the previous owner's 900 tons per day to potentially higher output levels while focusing on sustainable development rather than short-term cash maximization.
• The company is conducting an internal study on restarting the adjacent Levack mine, which operated until 2019 and shares synergies with McCreedy West, with recent drilling revealing high-grade copper zones of 24% copper plus PGMs within 200 meters of surface that have never been mined before.
• CEO Jason Jessup positions Magna Mining as uniquely advantaged in the copper market with a producing mine in the best jurisdiction in North America for copper and nickel mining, and four other fully permitted past producing mines with combined resources exceeding 50 million tons of copper, nickel, and PGM ores.

As global copper supply constraints intensify and institutional investors seek exposure to critical metals without the risks associated with multi-billion dollar development projects, Magna Mining presents a compelling proposition. The Sudbury-focused copper, nickel, and platinum group metals (PGM) company has successfully transitioned from explorer to producer, demonstrating operational capability while maintaining a pipeline of fully permitted assets in one of North America's premier mining jurisdictions.

With first-month production results exceeding expectations and a clear pathway to scaling operations, Magna Mining offers investors direct exposure to copper production with significantly reduced development risk compared to typical junior mining investments.

Operational Success Validates Production Strategy

Magna Mining's acquisition of the McCreedy West mine, completed on February 28, 2025, has immediately validated the company's operational approach. Despite anticipating losses during the transition month, the company produced 790,000 pounds of copper equivalent from approximately 20,000 tons of ore at 3% copper equivalent grade, generating $300,000 in positive cash flow. This performance is particularly noteworthy given the challenging circumstances facing the new operator.

CEO Jason Jessup emphasized the significance of this early success:

"I did not expect us to be in any way producing cash flow from that month at the mine. But you know it was a month of transition, really got started around the 7th of March. But I was really pleased with it."

The company inherited operational challenges that required immediate attention. There was no broken ore stockpiled, necessitating immediate mining operations, and the workforce required refocusing under new management. Despite these obstacles, Magna Mining achieved positive cash flow in what was effectively a three-week operational period, demonstrating both the asset's inherent value and management's operational competence.

Strategic Capital Allocation Framework

Magna Mining's recent $33.5 million funding round, comprising $23.5 million in convertible debentures and $10 million in equity, provides the working capital necessary to optimize operations and pursue growth opportunities. The company's capital allocation strategy reflects a disciplined approach focused on sustainable long-term value creation rather than short-term production maximization.

The funding will address several critical operational needs. Working capital requirements constitute a significant portion, as the company must bridge the gap between ore delivery and payment receipt from customers Vale and Glencore. Additionally, $5-10 million will be invested directly into McCreedy West for capital development, equipment replacement, and expanding operational flexibility.

Magna Mining has implemented a four-shift operation at McCreedy West, adding personnel and increasing underground working time compared to the previous three-shift schedule. The company has also engaged contractors for six months of additional underground development work, which will provide access to more workplaces and allow proper drilling and stope definition ahead of production.

Interview with CEO Jason Jessup

Development Pipeline for Scalable Growth

The McCreedy West operation serves as the foundation for a broader development strategy encompassing multiple fully permitted assets. The adjacent Levack mine, currently on care and maintenance, operated successfully until 2019 and offers significant synergies with McCreedy West operations. Recent drilling at Levack has revealed promising high-grade mineralization, including zones with 24% copper plus PGMs within 200 meters of surface in previously unmined areas.

Magna Mining is conducting an internal study on Levack's restart economics, with results expected in Q4 2025 preceded by a new NI 43-101 resource estimate for Levack is anticipated by the end of Q3 2025. The proximity and operational synergies between McCreedy West and Levack could enable a low-capital-cost restart, potentially funded by cash flow from the operating mine.

The company's development strategy extends beyond these two assets. Magna Mining controls four additional fully permitted past-producing mines with combined NI 43-101 resources exceeding 50 million tons of copper, nickel, and PGM mineralization. This portfolio provides multiple growth options and operational flexibility as commodity markets evolve.

Jurisdictional and Operational Advantages

Magna Mining's assets are located in the Sudbury region of Ontario, which offers several competitive advantages for mining operations. The jurisdiction provides stable regulatory framework, established infrastructure, and access to skilled labor. Sudbury's 180,000-person population includes numerous experienced mining professionals, many currently working in camp-based operations who would prefer local employment opportunities.

Jessup articulated this competitive advantage:

"No one has what we got. We have a producing mine in the best jurisdiction I would say in North America for copper and nickel mining and four other fully permitted past producing mines"

Management's operational experience in the Sudbury basin provides additional competitive advantages. CEO Jessup previously operated the McCreedy West mine during peak production periods, when daily throughput exceeded 2,500 tons compared to the recent 900 tons daily average under previous ownership. This operational knowledge enables informed decision-making regarding optimization opportunities and realistic production targets.

The company's established relationships with major customers Vale and Glencore provide secure off-take arrangements and predictable revenue streams. These relationships, combined with proven operational capability, reduce execution risk compared to typical development-stage mining investments.

Financial Structure and Shareholder Base

Magna Mining's capital structure reflects strong institutional support with over 50% institutional ownership. Dundee Corp, led by Jonathan Goodman who serves on Magna Mining's board, holds approximately 21% of the company and participated significantly in the recent financing round. Management and board members retain approximately 10% ownership, aligning interests with shareholders.

The recent convertible debenture financing provides operational flexibility while minimizing immediate dilution. The unsecured structure enabled rapid execution without complex security arrangements, while the participation of existing shareholders and management demonstrates confidence in the company's prospects.

The company ended Q1 2025 with approximately $38 million Canadian in cash, providing adequate working capital for operational optimization and initial development activities. This financial position enables management to focus on operational execution rather than fundraising activities during the critical ramp-up period.

The Investment Thesis for Magna Mining

• Immediate Copper Production: Unlike development-stage projects, Magna Mining offers direct exposure to copper production with first-month results demonstrating operational capability and positive cash flow generation.
• Scalable Asset Portfolio: Five fully permitted mines with 50+ million tons of resources provide multiple growth options and operational flexibility as market conditions evolve.
• De-Risked Development: Proven operational history, established customer relationships, and experienced management team reduce execution risk compared to typical junior mining investments.
• Bootstrap Growth Model: Self-funding expansion through operating cash flow minimizes dilution risk while maintaining financial flexibility and development timing control.
• Premium Jurisdiction Benefits: Sudbury location provides stable regulatory environment, established infrastructure, and access to skilled labor force.
• Strong Institutional Backing: Over 50% institutional ownership with significant participation from sophisticated investors including Dundee Corp demonstrates professional validation of the investment thesis.
• Operational Leverage: Historical production data showing 2,500+ tons daily capacity compared to recent 900 tons suggests significant optimization opportunities under experienced management.
• Near-Term Catalysts: Q3 2025 Levack resource update and Q4 2025 restart study provide clear timeline for growth acceleration and value recognition.

Macro Thematic Analysis

The global copper market faces significant supply-demand imbalances that favor established producers over development-stage projects. Major new copper developments require multi-billion dollar capital investments and multi-year construction timelines, creating substantial barriers to supply response despite favorable pricing fundamentals. This supply constraint environment particularly benefits companies like Magna Mining that can deliver immediate production capacity.

Copper Supply Constraints Drive Premium for Producing Assets

Institutional investors increasingly recognize the challenge of gaining copper exposure through traditional development projects, which carry execution risks including cost overruns, construction delays, and changing political climates. The capital intensity and timeline requirements of major copper projects create a premium for assets that can deliver production growth without massive capital deployment.

Magna Mining's positioning addresses these institutional concerns directly. Rather than competing for capital allocation against multi-billion dollar projects with uncertain timelines, the company offers scalable production growth funded through operating cash flow. This approach provides investors with copper exposure while avoiding the development risks that have plagued numerous large-scale mining projects globally.

The Sudbury jurisdiction's stability further enhances this value proposition. Unlike many major copper deposits located in jurisdictions with political or regulatory uncertainty, Magna Mining's assets benefit from Ontario's established mining framework and stable operating environment. This jurisdictional advantage becomes increasingly valuable as global mining companies reassess their exposure to higher-risk regions.

CEO Jessup captured this opportunity succinctly:

"When we talk to institutional investors and they're looking for how do we take advantage of any upswing in the copper price and get exposure to copper sooner without having the risk of multi-year, multi-billion dollar builds, delays, cost overruns, change in political climate. I think that's where our projects stand out."

Key Takeaways

Magna Mining represents a compelling investment opportunity for investors seeking exposure to copper production without the typical development risks associated with junior mining companies. The company's successful transition to producer status, combined with a portfolio of fully permitted assets in a premier jurisdiction, provides multiple pathways for value creation. The experienced management team's operational expertise and disciplined capital allocation approach, supported by strong institutional backing, positions the company to capitalize on favorable copper market fundamentals while maintaining financial flexibility and minimizing shareholder dilution. The combination of immediate cash flow generation, scalable growth opportunities, and reduced execution risk makes Magna Mining an attractive proposition for investors seeking leveraged exposure to the copper sector.