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Additional Information
Market: TSX
Sector: General Mining
EPIC: MAA
Latest Price: 0.12  (6.25% Ascending)
52-week High: 0.25
52-week Low: 0.12
Market Cap: 54.81M
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MagIndustries
www.magindustries.com

MagIndustries is a Canada-based company which operates in four business units: MagMinerals, MagForestry MagEnergy and MagMetals.

MagMinerals is engaged in the exploration and development of potash resource properties in the Republic of Congo.

MagForestry wholly owns and operates Eucalyptus Fibre Congo (EFC), a sustainable, renewable forestry business based in Pointe-Noire, Republic of Congo.

MagEnergy is financing and project managing the refurbishment and rehabilitation of off-line turbines at the Inga hydro-electric facility located on the Congo River.

MagMetals plans to produce magnesium metal and magnesium alloys for the automotive industry.

Full MagIndustries profile here
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MagIndustries to complete $185m private placement financing with TSC Capital

21st Dec 2010, 9:11 pm
MagIndustries to complete $185m private placement financing with TSC Capital

MagIndustries (TSX: MAA), a Toronto-based company with potash assets in the Republic of Congo,  announced today that it has entered into a letter of intent to complete a private placement worth up to C$185 million with investment firm TSC Capital.

Under the letter of intent, TSC Capital, if due diligence is satisfactory, will agree to buy 222.4 million units of MagIndustries at C$0.335 per unit.

Each unit consists of one MagIndustries common share and one warrant.  The warrant, with an expiration date of one year after the units are issued, allows the holder to buy one MagIndustries common share for C$0.335.

As consideration for entering into the letter of intent, MagIndustries has agreed to issue to TSC Capital roughly 113.48 million warrants, which individually entitles TSC Capital to acquire one MagIndustries common share for C$0.32.

If TSC Capital subscribes to the units offering and additionally exercises all warrants, it would own 55% of MagIndustries, giving MagIndustries $185 million in gross proceeds.

MagIndustries said the proceeds will help the company finance the construction of its Mengo potash project, while also allowing it to retain its 90% interest in the property. The Congo government holds the remaining 10% of the Mengo project.

In addition, under the terms of the agreement, a C$2.6 million due diligence fee is payable to TSC Capital from MagIndustries.

The offering is subject to regulatory and shareholder approvals, expected in the first quarter of next year.

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