Vancouver, British Columbia -- Magma Energy Corp. ("Magma") announces that it has closed a $26.3 million financing through the issuance of 21,045,000 common shares at a price of $1.25 per share. Magma is currently a private company with, post-financing, approximately 160 million shares issued and outstanding.
Magma is dedicated to becoming one of the world's pre-eminent geothermal energy companies through aggressive development of its existing portfolio of 21 geothermal properties in the USA, Chile, Peru, Nicaragua and Argentina. These properties include several advanced stage projects in Nevada and Utah and a producing plant in Nevada. Magma has received an independent report which indicates that five of its properties are expected to have, collectively, geothermal resources for 200 megawatts of power production at a 90% probability and 367 megawatts at a 50% probability.
Funds from this financing will be used to advance all of Magma's projects in 2009, including a planned expansion at the Company's operating Soda Lake plant near Fallon, Nevada. The Company anticipates that the expansion will increase the plant's current output of 8 megawatts of baseload power to approximately 16 megawatts. Magma will also continue to seek accretive acquisitions of geothermal projects internationally.
MAGMA ENERGY CORP.
Signed: "Ross Beaty"
Ross Beaty, Chief Executive Officer
For further information contact:
Ross Beaty, Chief Executive Officer
tel: + 604 806 3150
fax: + 604 687 7041
CAUTION REGARDING FORWARD LOOKING STATEMENTS: This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of future production, resource availability or determination, geological or engineering assumptions, governmental action or delay in the receipt of approvals, the results of drilling, estimated future capital and operating costs and Magma's commitment to, and plans for developing any of its projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Magma to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the Company's projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined. Although Magma has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Magma does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.