Madison Energy Corp.
TSX VENTURE : MDC

Madison Energy Corp.

August 30, 2007 11:02 ET

Madison Energy Corp. Closes Second Tranche of Convertible Debenture Offering

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2007) - MADISON ENERGY CORP., (TSX VENTURE:MDC) ("Madison" or the "Company") listed on the TSX Venture Exchange Inc. under the trading symbol "MDC" is pleased to announce that, in order to address its immediate working capital needs, it has closed the second tranche of its previously announced debenture financing. Pursuant to the closing, Madison has issued an additional $100,000 principal amount of 9% unsecured convertible debentures (the "9% Debentures") increasing the aggregate gross proceeds of the previously announced debenture offering to $850,000.

Under the terms of the offering, the 9% Debentures bear a coupon rate of 9% per annum, with interest payable quarterly and will be convertible at any time after their issuance into common shares of the Company at the holder's option at $0.20 per Common Share. The 9% Debentures mature on August 29, 2009 and any common shares received upon conversion will have a hold period expiring on December 30, 2007. The Company will also have the option to prepay Debentures at anytime after the date of issue upon 30 days notice and payment of an additional one month's interest.

The net proceeds from the private placement are expected to be used to meet current liabilities and for working capital purposes.

Madison is a Canadian-based corporation engaged in the acquisition, exploration and development of resource properties. Common Shares of the Company trade on the TSX Venture Exchange under the trading symbol "MDC".

This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Madison's control which may cause actual results, performance or achievements of the Madison to be materially different from the results, performance or expectations implied by these forward-looking statements.

"The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release."

Contact Information

  • Madison Energy Corp.
    John Murdoch
    Chief Executive Officer
    (403) 266-3453
    Email: murdochj@telus.net