MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

July 15, 2008 08:19 ET

MGM Energy Corp. Announces the Closing of $80.1 Million Public Offering

CALGARY, ALBERTA--(Marketwire - July 15, 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 the closing of the sale 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") for total gross proceeds of $80.1 million.

The Offering was underwritten by a syndicate of underwriters jointly led by RBC Capital Markets, Peters & Co. Limited, and Cormark Securities Inc., and which included BMO Capital Markets, Scotia Capital Inc., Canaccord Capital Corporation and FirstEnergy Capital Corp.

The proceeds from the Offering will be used by the Company to incur Canadian Exploration Expense (as defined in the Income Tax Act (Canada)), to fund its 2008-2009 winter drilling program and for general corporate purposes.

The outstanding securities of MGM Energy have not been registered in the United States and the Common Shares and Flow-Through Shares 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 gas exploration and development company with operations in Northern Canada. MGM Energy's common shares are listed on Toronto Stock Exchange under the symbol "MGX".

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 exploration and drilling plans and the timing thereof, and future plans and operations. 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 press release 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)