Alpayana Bets C$140M on Magna Mining's Sudbury Growth

A Peruvian mining group with six operating underground mines in Latin America is placing a C$140 million bet on a Canadian nickel-copper producer. Alpayana S.A.C. will buy 62.2 million shares of Magna Mining Inc. at C$2.25 each, a deal that gives the private company roughly 19.9% of Magna's outstanding equity.

The financing is structured as a non-brokered private placement. Magna plans to use the proceeds to push forward its Levack and Crean Hill projects, both past-producing mines in the Sudbury Basin that the company wants to bring back online. General corporate and working capital needs will absorb the rest.

Jason Jessup, Magna's CEO, said Alpayana's operating experience in Peru and Mexico fits with Magna's production base and its deep knowledge of the Sudbury district. "The values of our two companies are very closely aligned," he said in the release. The partnership opens the door to joint growth opportunities in the region, he added.

Alejandro Gubbins, Alpayana's chairman, framed the investment as an extension of the group's long-term approach to mining. "As a private group with four decades of continuous operations in Latin America, we are proud to extend our long-term, responsible approach to mining into one of the world's most established districts," he said.

What Alpayana brings

Alpayana runs multiple underground mines in Peru and Mexico. The company also operates water infrastructure at its Americana and Yauliyacu mines that provides clean water for more than 2.5 million people. That operational track record – not just the cheque – is the asset Magna is buying into. Jessup cited Alpayana's hands-on mining experience as a complement to Magna's property portfolio and local knowledge.