MagMinerals Potash Corp. Update
TORONTO, CANADA, Jul 30, 2008 (MARKET WIRE via COMTEX) -- MagIndustries Corp. ("MagIndustries or the "Company")(TSX VENTURE: MAA) is moving forward in its process of becoming a reporting issuer in certain provinces in Canada as previously outlined in MagIndustries Press Release of March 4, 2008. This process will include the filing of a preliminary prospectus for MagMinerals Potash which is expected to occur in August 2008. It is expected that, subject to clearance from the relevant securities regulators and receipt of relevant exchange approvals, MagMinerals Potash will become a reporting issuer in September, 2008. Pursuant to its press release of March 28, 2008, MagIndustries has completed the corporate reorganization placing MagIndustries ownership of the proposed Republic of Congo based Kouilou potash project in MagMinerals. Market conditions have continued to deteriorate since MagMinerals Potash announced an intention to raise further capital through a private placement in advance of its application to be a reporting issuer. MagIndustries has therefore concluded that it is not in the best interests of MagMinerals Potash or its shareholders to proceed with the private placement offering announced on July 15, 2008. After raising CDN$101 million in a private placement of equity in April 2008 and CDN$70 million in a private placement in June 2008, MagMinerals Potash is in a strong financial position relative to its financial obligations. Net of recent expenditures in support of its Kouilou Potash project and the repayment of EUR15 million to the European Investment Bank originally borrowed to finance project development, MagMinerals Potash still has approximately CDN$112 million in cash on hand. MagMinerals Potash published the results of a National Instrument 43-101 Reserve Estimate by Ercosplan Ingenieurgesellschaft (Ercosplan) as part of the final feasibility study reported on February 28, 2008. That study indicated sufficient reserves on a measured and indicated basis for a 34 year mine life for the 600,000 tonnes per year Phase 1 portion of its Kouilou region potash project near Pointe-Noire in the Republic of Congo. In June 2008 MagMinerals Potash mandated Ercosplan to carry out further studies of the license area to assess the availability of sufficient resources to support the expansion of the Kouilou project to 1.2 million tonnes per year (tpy). MagMinerals anticipates a report on the results of these studies including an indication of the economic viability of the full 1.2 million tpy project within the next two weeks. The Kouilou plant is based on a modular design and it is the intention of MagMinerals to double the first phase capacity as soon as possible to reach total production of 1,200,000 tpy to more fully utilize the extensive resource base available. The capital cost required to double the capacity of the plant is expected to be significantly lower than the first phase as it will benefit from the extensive infrastructure required for Phase 1. On a fully diluted basis, MagMinerals is 62% owned by MagIndustries Corp. (CA:MAA: news, chart, profile) .
About MagIndustries Corp. MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX-V Exchange and trades in Canadian currency under the symbol "MAA". The Company has 197,514,016 shares outstanding on an undiluted basis. MagIndustries' wholly owned resource subsidiaries are operating and developing major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC). Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forwardlooking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts: MagIndustries Corp. Rich Morrow Vice-President, 416-368-7911 416-368-5048 (FAX) Cell: 416-258-0829
SOURCE: MagIndustries Corp.