TSC Capital Ltd.

February 11, 2011 09:55 ET

TSC Capital Announces Decision Not to Subscribe for Units in MagIndustries Corp.

TORONTO, ONTARIO--(Marketwire - Feb. 11, 2011) - TSC Capital Ltd. ("TSC") announces that it has decided to terminate its due diligence investigations with respect to MagIndustries Corp. ("MagIndustries" or the "Company") (TSX:MAA) and has determined not to participate in the potential offering of units of MagIndustries previously disclosed in a press release dated December 21, 2010.

TSC reserves all other rights granted to it pursuant to the letter of intent between TSC and MagIndustries dated December 21, 2010 including under the common share purchase warrants (the "Warrants"). Each Warrant entitles TSC to acquire one common share in the capital of the Company at an exercise price of Cdn$0.32 per common share at any time until December 21, 2011. The issuance of the Warrants was completed in conjunction with the issuance of one common share in the capital of the Company at a price of Cdn$0.32. If exercised in full, the common shares issuable to TSC pursuant to the Warrants will bring TSC's ownership of MagIndustries to approximately 19.9% of the issued and outstanding shares.

TSC may in the future take such actions in respect of its holdings of securities of the Company as it deems appropriate in light of circumstances then existing, including the exercise of the Warrants, or the acquisition or disposition of Common Shares or other securities of the Company. TSC may from time to time acquire Common Shares in the open market or in privately negotiated transactions, subject to availability of Common Shares at prices deemed favourable, the Company's business or financial condition and other factors and conditions TSC deems appropriate. In addition, TSC may formulate other purposes, plans or proposals regarding the Company or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors.

About TSC Capital Ltd.

TSC is a private investment partnership focused on the mining and natural resources sector. TSC and its partners have extensive investment and mining experience in Africa, Asia, and Europe, including leading roles in the development and operation of large scale mining projects. The firm invests in natural resource companies at all stages of development, bringing a broad range of operational and management competencies in addition to financial capital. TSC has particular expertise in Sub-Saharan Africa, the firm's area of historic focus.

TSC's address is Coast Building, 2nd Floor, Wickham's Cay II, Road Town, Tortola, BVI. A copy of the early warning report to be filed by TSC under applicable Canadian securities laws in connection with the information in this press release may be obtained from Justin Chorn, Director of TSC at +44 (0) 7515 288 598.

The issuance of this news release is not an admission that an entity named in this news release owns or controls any described securities or is a joint actor with another named entity.

Contact Information

  • TSC Capital Ltd.
    Justin Chorn
    Director
    +44 (0) 7515 288 598