Toronto-MagIndustries Corp. reports that its wholly-owned subsidiary, MagMinerals Potash Corp., has closed its previously announced private placement with Interco Potash Inc. (formerly Portonovo Inc.) of $12.16 million in MagPotash securities at a price of $5.00 per security. The offering was structured in a manner similar to that used for the financing, which was completed in April 2008. Interco has acquired 2,431,843 common shares in MagMinerals Holdings Corp. MagHoldings subsequently used the proceeds from the offering to subscribe for 2,431,843 subscription receipts in the capital of MagPotash at a price of $5.00 per subscription receipt. The proceeds from this offering will be applied to the construction of phase 1 of MagPotash’s Kouilou potash project. In connection with the closing of the offering, Socofran S.A., an affiliate of Interco that will be providing infrastructure related services for the Kouilou potash project, has agreed with MagPotash that up to $22.84 million of the consideration payable to it in return for the services to be performed may be satisfied through the issuance of securities at a deemed issue price of $5.00 per security.
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