MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

April 06, 2011 16:03 ET

MagIndustries Announces Sale of SNEL Receivable

TORONTO, ONTARIO--(Marketwire - April 6, 2011) - MagIndustries Corp. ("MagIndustries" or the "Company") (TSX:MAA) is pleased to announce that it has sold forward the balance of its receivable from the Société Nationale d'Electricité ("SNEL") for net proceeds of approximately US$6 million. As announced in the Company's September 15, 2010 press release, the Company's subsidiary MagEnergy Inc. and SNEL, the electric utility of the Democratic Republic of Congo, signed an Accord Transactionnel (the "Accord") which compensated the Company's for expenses incurred towards the refurbishment of SNEL's INGA II hydroelectric facility, principally the recently re-commissioned turbine G23. The Accord was signed in August 2010, and the Company has been receiving net proceeds of approximately $400,000 per month since then for total net proceeds, prior to the sale, of approximately $2.3 million.

Under the terms of the receivable sale agreement, the Company has received payment of approximately US$6 million, and the purchaser has agreed to assume and perform all obligations of the Company in respect of this receivable to its partners in the refurbishment project and indemnify the Company for any claims arising from these obligations.

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". The Company has 456,772,463 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 on its website, www.magindustries.com.

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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