TORONTO, ONTARIO--(Marketwired - May 16, 2014) - MagIndustries Corp. ("MagIndustries" or the "Company") (TSX:MAA) announced today that the loan agreements approved at the Special Meeting of shareholders held on May 7, 2014 (see the Company's press release of May 8,2014) have been signed effective May 7,2014.
The majority of shareholders voted in favour a resolution approving the loans at the meeting as set out in the Company's Management Proxy Circular dated April 7, 2014 (the "Circular") namely:
- the resolutions approving certain loan agreements between the Company's wholly-owned subsidiary, MagMinerals Inc., and Evergreen Resources (BVI) Ltd. and the allotment and reservation for issuance of that number of common shares in the capital of MagIndustries as may be required to satisfy the conversion feature of such loan agreements, as described in more detail in the Circular.
The first loan agreement, which has been fully drawn, is for a principal amount of CAD$53 million, bearing 10% interest, maturing December 31, 2015. The second loan is for a principal amount of CAD$80 million of which CAD$31million has already been advanced. The loan bears interest of 10% and matures on December 31, 2015. Both loans may be retired at the direction of the borrower by an exchange into MagIndustries shares. The loan documents will be available on SEDAR.
About MagIndustries Corp.
MagIndustries is a Canadian company whose common shares are listed on the TSX and trade in Canadian currency under the symbol "MAA". The Company has 755,942,674 common shares outstanding. MagIndustries is focused on the development of its potash assets in the ROC. More information on the Company is available on its website, www.magindustries.com.
Cusip: 55917T 102