MagIndustries Corp. Announces it Has Signed a Memorandum of Understanding With a Strategic Party
June 12 2009 - 1:19PM
Marketwired
MagIndustries Corp. (the "Company") (TSX VENTURE: MAA) is pleased
to announce that it has signed a Memorandum of Understanding
("MOU") with a strategic party (the "Subscriber") that intends to
subscribe for 400 million MagIndustries shares at a price of
Cdn$0.70.
Closing of the transaction contemplated by the MOU is subject to
a number of conditions and approvals which include approval of the
transaction by MagIndustries' Board of Directors, approval by a
majority of MagIndustries shareholders at a special meeting of
shareholders, all relevant regulators and government authorities
and satisfactory completion of due diligence. The share
subscription is also conditional on the Subscriber arranging
substantially all of the debt financing required for the completion
of Phase I of the Company's Kouilou Potash Project in the Republic
of Congo (the "Project") as an alternative to debt financing that
might be available to the Company from other sources.
The Company would be in a fully funded position with respect to
the Project if the transaction contemplated by the MOU is
completed.
The MOU outlines the intentions and principal terms of
investment in anticipation of finalizing and executing definitive
documentation. Upon conclusion of the investment, the Subscriber
would hold approximately 52.7% of the Company's common shares
outstanding (after giving effect to MagIndustries' recently
announced equity financing, assuming the full exercise of the
over-allotment option). Further details relating to the transaction
will be provided in a future press release.
About MagIndustries Corp.
MagIndustries is a Canadian company whose common shares are
listed on the TSX-Venture Exchange and trades in Canadian currency
under the symbol "MAA". The Company has 288,079,962 shares
outstanding on an undiluted basis. MagIndustries' resource
subsidiaries are operating and developing major industrial projects
in the Republic of Congo and the Democratic Republic of Congo. 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.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: MagIndustries Corp. Mr. Jeff Swinoga Senior Vice
President and Chief Financial Officer 416-368-7911
jswinoga@magindustries.com MagIndustries Corp. Mr. Richard Pratt
General Counsel 416-368-7911 rpratt@magindustries.com
www.magindustries.com
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