MagIndustries Corp.

MagIndustries Corp.

November 09, 2010 10:05 ET

MagIndustries Corp. Announces Terms of Equity Financing

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2010) -


MagIndustries Corp. ("Mag" or the "Company") (TSX:MAA) announced today that, in connection with its previously announced public offering, it will enter into an underwriting agreement with Cormark Securities Inc. and BMO Nesbitt Burns Inc (collectively, the "Underwriters") to sell 33,400,000 common shares of the Company (the "Common Shares") at a price of Cdn$0.30 per Share to raise gross proceeds of Cdn$10,020,000 (the "Offering"). The Common Shares are being offered by way of a short form prospectus in the provinces of Ontario, Alberta, British Columbia, Saskatchewan, Manitoba, New Brunswick and Nova Scotia (the "Qualifying Provinces").

The Underwriters have also been granted an option to purchase up to an additional 5,010,000 Common Shares on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering (the "Over-Allotment Option"). If the Over-Allotment Option is exercised in full, the total gross proceeds to Mag will be Cdn$11,523,000.

The Offering is scheduled to close on or about November 23, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.

The net proceeds of the Offering will be used for ongoing project development, working capital and general corporate purposes.

The Common Shares offered have not been and will not be 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 applicable 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 Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 418,362,462 shares outstanding on an undiluted basis. MagIndustries' resource subsidiaries are operating and developing major industrial projects in the Republic of Congo and the Democratic Republic of Congo. 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.

Cusip: 55917T 102

Neither Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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