NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
VANCOUVER, B.C., CANADA, June 26, 2009 -- Magma Energy Corp. ("Magma") announced today the pricing of its initial public offering of 66,667,000 common shares at a price of C$1.50 per common share, for total gross proceeds of approximately C$100 million. The offering is expected to close on July 7, 2009.
A syndicate of underwriters, co-led by Raymond James Ltd. and Cormark Securities Inc., has managed the offering. The other members of the syndicate are Canaccord Capital Corporation, National Bank Financial Inc., Dundee Securities Corporation, Jacob & Company Securities Inc. and Wellington West Capital Markets Inc.
Magma has granted to the underwriters an over-allotment option, exercisable for a period of 30 days from the date of closing of the offering, to purchase up to an additional 10,000,050 common shares at the offering price of C$1.50 per common share to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, total gross proceeds of the offering will be approximately C$115 million.
Magma has received conditional approval for the listing of its common shares on the Toronto Stock Exchange under the symbol "MXY". Listing is subject to Magma fulfilling all of the requirements of the Toronto Stock Exchange on or before September 21, 2009, including distribution of the common shares to a minimum number of public shareholders.
A copy of Magma's final prospectus has been filed with Canadian securities regulators in each of the Provinces and Territories of Canada, other than Québec, and will be available at www.sedar.com. No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ''U.S. Securities Act''), or any state securities laws, and may not be offered or sold in the United States unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Magma Energy Corp. in any jurisdiction.
About Magma Energy Corp.
Magma Energy Corp. is a geothermal power company which is actively engaged in operating, developing, exploring and acquiring geothermal energy projects. We currently have one operating power generation plant (the Soda Lake Operation in Nevada), four advanced-stage exploration properties and 14 earlystage exploration properties in our portfolio of assets throughout the Western United States, Chile, Argentina and Peru.
410 - 625 HOWE STREET | VANCOUVER | BC | V6C 2T6 | CANADA
T: 604 687 0407 F: 604 687 7041 E: firstname.lastname@example.org
For further information please contact:
Andrea Zaradic, Vice President, Corporate Development
Magma Energy Corp.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF APPLICABLE CANADIAN SECURITIES LEGISLATION, SUCH AS STATEMENTS REGARDING THE EXPECTED TIMING AND TERMS OF MAGMA'S INITIAL PUBLIC OFFERING. WHERE STATEMENTS BY MAGMA EXPRESS OR IMPLY AN EXPECTATION OR BELIEF AS TO FUTURE EVENTS OR RESULTS, SUCH EXPECTATION OR BELIEF IS EXPRESSED IN GOOD FAITH AND BELIEVED TO HAVE A REASONABLE BASIS. HOWEVER, FORWARD-LOOKING INFORMATION INVOLVES RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE MAGMA'S ACTUAL RESULTS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING INFORMATION. SUCH FACTORS INCLUDE THOSE FACTORS DESCRIBED IN MAGMA'S PROSPECTUS UNDER THE HEADING "RISK FACTORS". ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING INFORMATION. MAGMA DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE SUCH FORWARD-LOOKING INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW. ADDITIONALLY, MAGMA EXPRESSLY DISCLAIMS ANY OBLIGATION TO COMMENT ON EXPECTATIONS OF, OR COMMENTS MADE BY, THIRD PARTIES IN RESPECT OF OUR INITIAL PUBLIC OFFERING.