MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

May 20, 2005 16:35 ET

MagIndustries Corp. Closes US$750,000 Non Brokered Private Placement

HALIFAX, CANADA--(CCNMatthews - May 20, 2005) - MagIndustries Corp. (the "Company") (TSX VENTURE:MAA.U) announced today that it has closed its previously announced private placement (the "Offering") of 1,000,000 units ("Units") of the Company at a price of US$0.75 per Unit for gross proceeds of US$750,000.

Each Unit issued in the Offering consists of one common share of the Company and one half of one common share purchase warrant, each whole common share purchase warrant entitles the holder to purchase one additional common share of the Company at a price of US$1.20 per share on or prior to May 20, 2007. The net proceeds of the Offering are expected to be used for MagIndustries's three business sectors, being potash, magnesium and energy, including appropriate bankable feasibility studies and general corporate purposes.

About MagIndustries Corp.:

MagIndustries' three wholly owned subsidiaries are proceeding with the development of major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC). MagEnergy Inc. is a leading participant in the rehabilitation of the 1774 MW Inga Hydro-electric station on the Congo River in the DRC. MagMinerals Inc. plans to develop a 300,000tpy potash (fertilizer) plant at Pointe-Noire which may also include the production of salt and calcium chloride. MagMetals Inc. is planning the development of a 60,000tpy magnesium smelter adjacent to the potash plant for the production of magnesium alloys for the global automotive industry. The raw materials for the MagMinerals and MagMetals plants will be sourced from MagIndustries' 100% owned magnesium and potash salt deposits near Pointe-Noire in the ROC.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX Venture Exchange and are traded in U.S. currency under the symbol "MAA.U". After taking the above transaction into account, the Company has 90,040,248 shares outstanding on an undiluted basis. More information on the Company is available at its website, http://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.

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

Contact Information

  • MagIndustries Corp.
    William Burton
    President & Chief Executive Officer
    (902) 257-1171