Ivernia Inc. (TSX: IVW), owner of the Magellan Mine in Western Australia, said that it has entered into an agreement for Green SEA Resources Inc. to pay Canadian $20 million (A$19.5 million) in exchange for a 16% stake in the owner of the world's largest pure lead mine.

The deal provides that Green Sea will purchase 93,370,682 shares at a price of C$0.2142 per common share. The private placement may include other investors that, if they choose to participate, would result in Green Sea's participation being reduced to a minimum of 44,571,721 common shares.

The offering will be completed by way of a non-brokered private placement and, subject to required Toronto Stock Exchange ("TSX") approvals, is expected to close on or before May 27, 2011.

Ivernia Inc. announced in April that Magellan Metals Pty. Ltd., a wholly owned subsidiary, voluntarily halted all operations at the Magellan Mine and placed it under care and maintenance.

According to Ivernia, Magellan Metals continues to undertake a comprehensive end-to-end review of all its activities related to the Magellan Mine, including the mining, processing, transporting and management of lead carbonate production and export. Magellan Metals is also continuing its investigation into the source and extent of the lead-bearing mud found on certain shipping containers that precipitated the shutdown of mining operations.

Ivernia said that it cannot at this time provide any further guidance on when the Company will restart operations at the Magellan Mine, which is located near Wiluna in Western Australia.

Ivernia said it has been advised by its financial and Australian legal advisors that Magellan Metals requires certainty of funding immediately. The proceeds of the A$19.5 million offering will be used to strengthen Ivernia's financial position generally and specifically to provide working capital to fund Magellan Metals during the care and maintenance of the Magellan Mine.

Green Sea and its affiliates already currently hold 277,947,928 common shares, or approximately 47.74% of Ivernia's outstanding common shares.

Paradigm Capital Inc. and Stikeman Elliott LLP are Ivernia's financial and Canadian legal advisors, respectively, regarding the Offering.