MagIndustries Corp.

MagIndustries Corp.

August 09, 2011 09:09 ET

MagIndustries Corp. Announces Notice of Redemption and Change of Control Offer for Its 11% Notes Due December 20, 2012

TORONTO, ONTARIO--(Marketwire - Aug. 9, 2011) - MagIndustries Corp. (the "Company") (TSX:MAA) announced today that it has issued a notice of redemption for all of its 11% Notes due December 20, 2012 (the "Notes"). A notice of redemption (the "Redemption Notice") pursuant to the terms of the indenture governing the Notes (the "Indenture") is being distributed by Equity Financial Trust Company, the trustee under the Indenture (the "Paying Agent"). The Redemption Notice issued on August 8, 2011 states that the redemption date is October 6, 2011 (the "Redemption Date"), and the redemption price is US$1,049.53 per US$1,000 principal amount of Notes (the "Redemption Amount"). The Redemption Amount will be paid promptly following the later of the Redemption Date and the time of surrender of the Notes called for redemption to the Paying Agent.

As previously announced, on July 22, 2011 Evergreen Resources Holding (BVI) Ltd. completed its acquisition of approximately 77.6% of the issued and outstanding common shares of the Company. As a result of this acquisition, a change of control under the Indenture has occurred. Therefore, the Company also announced today the commencement of a change of control redemption offer for all of the outstanding Notes. Holders that validly tender their Notes pursuant to the change of control redemption offer prior to 5:00 p.m., Toronto time, on the change of control offer expiration date of September 6, 2011 (the "COC Offer Expiration Date"), will be entitled to receive the offer consideration of US$1,040.80 (the "Change of Control Redemption Amount"). The Change of Control Redemption Amount will be paid within 30 days following the Redemption Date, and is currently expected to be paid on October 6, 2011. Holders who tender in the change of control offer will not be entitled to interest after the COC Offer Expiration Date.

Questions regarding the redemption and the change of control offer should be directed to Equity Financial Trust Company by telephone at 1-866-393-4891 or by facsimile at +1-416-361-0470.

This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell securities. No recommendation is made as to whether or not holders of notes should tender their securities pursuant to the change of control offer.

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". 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,

About Evergreen Industries Group

Evergreen Industries Group is an industrial holding group based in Shanghai, China with a focus on the fields of shipbuilding, marine engineering, mining and logistics.

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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