MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

June 26, 2008 10:14 ET

MGM ENERGY CORP. Announces Pricing of $80.1 Million Public Offering of Common Shares and Flow-Through Shares

CALGARY, ALBERTA--(Marketwire - June 26, 2008) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS.

MGM Energy Corp. ("MGM Energy" or the "Company") (TSX:MGX) is pleased to announce that it has entered into an underwriting agreement today to sell a total of 82,000,000 common shares ("Common Shares") at a price of $0.55 and 52,250,000 Common Shares issued on a "flow-through basis" under the Income Tax Act (Canada) ("Flow-Through Shares") at a price of $0.67 (the "Offering") to raise gross proceeds of $80,107,500. Under the Offering, Clay Riddell and/or Paramount Resources Ltd. have subscribed for $32,300,000 of Common Shares and/or Flow-Through Shares.

The Offering is being underwritten by a syndicate of underwriters jointly led by RBC Capital Markets, Peters & Co. Limited, and Cormark Securities Inc., and includes BMO Capital Markets, Scotia Capital Inc., Canaccord Capital Corporation and FirstEnergy Capital Corp. (collectively, the "Underwriters").

The proceeds from the Offering will be used by the Company to fund its 2008-2009 winter drilling program and for general corporate purposes.

The Common Shares and Flow-Through Shares will be qualified for distribution by way of a short form prospectus in all of the provinces of Canada and the Northwest Territories. Completion of the Offering is subject to certain conditions including normal regulatory approvals. The Offering is expected to close on or about July 15, 2008.

The Common Shares and Flow-Through Shares to be issued under this Offering 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 an exemption from such registration. This news release shall not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States nor shall there be any offer or sale of securities in any jurisdiction where such offer, solicitation or sale would be unlawful.

MGM Energy is a Calgary based Canadian oil and natural gas exploration and development company with operations focused in Northern Canada. MGM Energy's common shares are listed on the Toronto Stock Exchange under the symbol "MGX".

Forward-Looking Statements: Certain statements or information included in this press release constitute forward-looking statements under applicable securities legislation. Forward-looking statements or information in this press release include but are not limited to estimates of the size of discovered resources, the prospectivity of undeveloped land, business strategy and objectives, exploration and drilling plans and the timing thereof, future plans and operations, as well as the anticipated timing for seeking regulatory approvals. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. Although MGM Energy believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because MGM Energy can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by MGM Energy and described in the forward-looking statements or information. The forward-looking statements or information contained in this document are made as of the date hereof and MGM Energy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • MGM Energy Corp.
    H.W. (Henry) Sykes
    President
    (403) 781-7800
    (403) 781-7801 (FAX)
    or
    MGM Energy Corp.
    Rick Miller
    Chief Financial Officer
    (403) 781-7800
    (403) 781-7801 (FAX)