MagIndustries Corp.

MagIndustries Corp.

June 01, 2009 16:45 ET

MagIndustries Corp. Announces Equity Financing

TORONTO, ONTARIO--(Marketwire - June 1, 2009) -


MagIndustries Corp. ("Mag" or the "Company")(TSX VENTURE:MAA) is pleased to announce that it has filed a preliminary short form prospectus for a new issue of common shares (the "Common Shares") of the Company in certain provinces of Canada (the "Offering"). The Offering is anticipated to raise approximately $30 million in gross proceeds prior to the Over-Allotment Option described below.

The Offering is being led by Cormark Securities Inc. and includes a syndicate of dealers (collectively, the "Underwriters").

Mag has also granted the Underwriters an option (the "Over-Allotment Option") for purchase up to an additional 15% of the Common Shares sold under the Offering to cover over-allotments, if any and for market stabilization purposes. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following the closing of the Offering.

The Offering is scheduled to close on or about June 16, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture exchange.

The net proceeds of the Offering will be applied toward the construction of Phase I of the Company's potash project near Mengo in the Kouilou province of the Republic of Congo, including construction of a portion of the natural gas pipeline, purchasing of materials, services and equipment, and acceleration of engineering work.

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-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,

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

"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."

Contact Information