MagIndustries Corp.

MagIndustries Corp.

February 24, 2010 08:30 ET

MagIndustries Corp. Announces Closing of Prospectus Offering

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2010) -


MagIndustries Corp. ("Mag" or the "Company")(TSX:MAA) is pleased to announce it has closed the previously announced prospectus offering of 50,000,000 common shares of the Company (the "Offering") at a price of $0.40 per common share to raise gross proceeds of Cdn$20,000,000. The Company has also closed the sale of an additional 7,500,000 common shares of the Company pursuant to the over-allotment option (the "Over-Allotment Option") at a price of $0.40 per Common Share. Aggregate gross proceeds from the Offering total Cdn$23,000,000.

The Offering was sold through a syndicate of underwriters led by Cormark Securities Inc. and BMO Nesbitt Burns Inc., and including Canaccord Financial Ltd. and Jennings Capital Inc. (collectively, the "Underwriters").

The net proceeds of the Offering will be applied to working capital and general corporate purposes as the Company concludes the agreements contemplated in the Project Development Framework announced in a press release dated February 1, 2010, and during the construction of its Mengo Potash Project, scheduled to start November 2010.

The Common Shares offered have not been and will not be 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 applicable 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 Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About MagIndustries Corp.

MagIndustries is a Canadian company whose common shares are listed on the TSX and trades in Canadian currency under the symbol "MAA". After taking the above transaction into account the Company has 418,042,462 shares outstanding on an undiluted basis. MagIndustries is focused on the development of its potash assets in the Republic of Congo. More information on the Company is available at its website,

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

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