MagIndustries Corp.

MagIndustries Corp.

March 05, 2008 08:00 ET

MagIndustries Announces $100 Million Offering for MagMinerals

TORONTO, ONTARIO--(Marketwire - March 5, 2008) -


MagIndustries Corp. ("MagIndustries" or the "Company")(TSX VENTURE:MAA) is pleased to announce that it has entered into an agreement with a syndicate of agents co-led by Cormark Securities Inc. and Paradigm Capital Inc. and including Desjardins Securities Inc., Jennings Capital Inc. and Ambrian Securities plc, to sell on a best efforts basis approximately $100 million of equity in the capital of the Company's subsidiary MagMinerals Inc. ("MagMinerals") by way of private placement (the "Offering").

The net proceeds of the Offering will be used by MagMinerals to fund the repayment of approximately Euro 15 million in project related debt with the remaining funds to be applied to the development of Phase I of the Company's potash project near Mengo in the Kouilou province of the Republic of the Congo as well as the completion of a feasibility study update for Phase II. The Agents will receive a cash commission of 5.0% of the gross proceeds of the Offering.

Subsequent to the Offering, the Company intends to cause MagMinerals to become a reporting issuer in one or more provinces of Canada through an initial public offering, reverse take-over or similar transaction.

The securities offered have not been 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 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 securities in any State in which such offer, solicitation or sale would be unlawful.

The Offering is expected to close April 3, 2008 and will be subject to the receipt of all necessary regulatory approvals.

About MagIndustries Corp.

MagIndustries' wholly owned resource subsidiaries are operating and developing major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC).

MagEnergy is the leading participant in the refurbishment (Phase 1) and rehabilitation (Phase 2) of the generating capacity at the 1,424MW Inga II Hydroelectric station on the Congo River in the DRC. The Industrial Development Corporation of South Africa holds a 30% interest in Phase I and a 15% interest in Phase 2. MagEnergy is also evaluating the development of the 250MW Busanga hydro-electric site in the Katanga region of the DRC and the 100MW Zongo II site near Kinshasa.

MagForestry controls 100% of Eucalyptus Fibre Congo S.A., an operating, 68,000 hectare eucalyptus forest plantation which overlies MagIndustries Makola Mineral License near Pointe-Noire, ROC. A 500,000tpy log chipping plant is currently under construction at the Company's harbour site.

MagMinerals has received a final feasibility study for the development of a 600,000 tonne per year ("tpy") potash (fertilizer) plant and solution mining field near Pointe-Noire, ROC.

MagMetals is planning the development of a 72,000tpy magnesium smelter adjacent to MagMinerals' potash plant to produce magnesium alloys for the global automotive industry. The raw materials for the MagMinerals and MagMetals plants will be sourced by solution mining MagIndustries' 100% owned carnallite (magnesium and potash salt) deposits which underlie the Makola Mineral License near Pointe-Noire.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX-V Exchange and trades in Canadian currency under the symbol "MAA". The Company has 195,169,016 shares outstanding on an undiluted basis, 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.

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

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