MagIndustries Announces $100 Million Offering for MagMinerals
Marketwire
MagIndustries Corp.
March 4, 2008 - 05:52:14 PM
MagIndustries Announces $100 Million Offering for MagMinerals
TORONTO, ONTARIO--(Marketwire - March 4, 2008) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
U.S.
MagIndustries Corp. ("MagIndustries" or the "Company")(TSX VENTURE:MAA) is
pleased to announce that it has entered into an agreement with a syndicate of
agents co-led by Cormark Securities Inc. and Paradigm Capital Inc. and
including Desjardins Securities Inc., Jennings Capital Inc. and Ambrian
Securities plc, to sell on a best efforts basis approximately $100 million of
equity in the capital of the Company's subsidiary MagMinerals Inc.
("MagMinerals") by way of private placement (the "Offering").
The net proceeds of the Offering will be used by MagMinerals to fund the
repayment of approximately Pound Sterling 15 million in project related debt
with the remaining funds to be applied to the development of Phase I of the
Company's potash project near Mengo in the Kouilou province of the Republic of
the Congo as well as the completion of a feasibility study update for Phase
II. The Agents will receive a cash commission of 5.0% of the gross proceeds of
the Offering.
Subsequent to the Offering, the Company intends to cause MagMinerals to become
a reporting issuer in one or more provinces of Canada through an initial
public offering, reverse take-over or similar transaction.
The securities offered have not been registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United States
absent registration or exemption from the registration requirements. This
press release shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any State in
which such offer, solicitation or sale would be unlawful.
The Offering is expected to close April 3, 2008 and will be subject to the
receipt of all necessary regulatory approvals.
About MagIndustries Corp.
MagIndustries' wholly owned resource subsidiaries are operating and developing
major industrial projects in the Republic of Congo (ROC) and the Democratic
Republic of Congo (DRC).
MagEnergy is the leading participant in the refurbishment (Phase 1) and
rehabilitation (Phase 2) of the generating capacity at the 1,424MW Inga II
Hydroelectric station on the Congo River in the DRC. The Industrial
Development Corporation of South Africa holds a 30% interest in Phase I and a
15% interest in Phase 2. MagEnergy is also evaluating the development of the
250MW Busanga hydro-electric site in the Katanga region of the DRC and the
100MW Zongo II site near Kinshasa.
MagForestry controls 100% of Eucalyptus Fibre Congo S.A., an operating, 68,000
hectare eucalyptus forest plantation which overlies MagIndustries Makola
Mineral License near Pointe-Noire, ROC. A 500,000tpy log chipping plant is
currently under construction at the Company's harbour site.
MagMinerals has received a final feasibility study for the development of a
600,000 tonne per year ("tpy") potash (fertilizer) plant and solution mining
field near Pointe-Noire, ROC.
MagMetals is planning the development of a 72,000tpy magnesium smelter
adjacent to MagMinerals' potash plant to produce magnesium alloys for the
global automotive industry. The raw materials for the MagMinerals and
MagMetals plants will be sourced by solution mining MagIndustries' 100% owned
carnallite (magnesium and potash salt) deposits which underlie the Makola
Mineral License near Pointe-Noire.
MagIndustries Corp. is a Canadian company whose common shares are listed on
the TSX-V Exchange and trades in Canadian currency under the symbol "MAA". The
Company has 195,169,016 shares outstanding on an undiluted basis, More
information on the Company is available at its website, www.magindustries.com.
Except for historical information, this press release contains forward-looking
statements, which reflect the Company's current expectation regarding future
events. These forward-looking statements involve risks and uncertainties,
which may cause actual results to differ materially from those statements.
Those risks and uncertainties include, but are not limited to, changing market
conditions, and other risks detailed from time-to-time in the Company's
ongoing filings. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. In light of these risks, uncertainties and assumptions,
the forward-looking events in this press release might not occur.
Cusip: 55917T 102
