MagIndustries Corp.

MagIndustries Corp.

June 02, 2009 13:14 ET

MagIndustries Corp. Announces Terms of Equity Financing

TORONTO, ONTARIO--(Marketwire - June 2, 2009) -


MagIndustries Corp. ("Mag" or the "Company") (TSX VENTURE:MAA) announced today that, in connection with its previously announced public offering, it has entered into an underwriting agreement with a syndicate of underwriters led by Cormark Securities Inc. and including BMO Nesbitt Burns Inc., Paradigm Capital Inc., Canaccord Capital Corporation and Jennings Capital Inc. (collectively, the "Underwriters") to sell 62,150,000 common shares of the Company (the "Common Shares") at a price of Cdn$0.42 per Share to raise gross proceeds of Cdn$26,103,000 (the "Offering"). The Common Shares are being offered by way of a short form prospectus in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario and Saskatchewan (the "Qualifying Provinces").

The Underwriters have also been granted an option to purchase up to an additional 9,322,500 Common Shares on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering (the "Over-Allotment Option"). If the Over-Allotment Option is exercised in full, the total gross proceeds to Mag will be Cdn$30,018,450.

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.

An amended and restated preliminary short form prospectus (the "preliminary prospectus") relating to the Offering will be filed today with securities commissions or similar authorities in each of the Qualifying Provinces. Copies of the preliminary prospectus may be obtained upon request without charge from Cormark Securities Inc. When available, a copy of the preliminary prospectus may also be obtained on SEDAR ( There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

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."

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