Toronto-MagIndustries Corp. said Sept. 24 that the counterparty to the memorandum of understanding signed earlier this summer (GM June 22) is Sinohydro Corp. The MOU provides for a proposed purchase of 400 million common shares of MagIndustries by the subscriber at a price of C$0.70 per common share. Senior officers of MagIndustries and Sinohydro met this week in Beijing and have agreed to work toward the signing of all documentation with respect to the investment by Oct. 30, 2009. “We are very pleased that such an internationally sophisticated and capable company as Sinohydro is interested in MagIndustries,” said Bill Burton, MagIndustries’ CEO. “We see their interest as a confirmation of the globally competitive quality of our potash resource and an endorsement of the host jurisdiction of our potash development, the Republic of Congo. Beyond potash, Sinohydro will be a uniquely synergistic partner for us as we pursue development opportunities in our MagEnergy division. Looking beyond our Phase 1 turbine rehabilitation project of the INGA II hydroelectric facility in the Democratic Republic of Congo, which we expect to complete in the coming months, we see significant further power development opportunities in Central and Sub-Saharan Africa which would become highly addressable with Sinohydro as a major shareholder.” According to Mag, Sinohydro is one of the world’s leading companies in the water conservation and hydropower industries, noting that the group ranks 50th in the top 225 international contractors listing by the Engineering News Record and stands in 4th place among Chinese contractors in term of overseas revenues. Sinohydro’s interests extend to mineral resources, including potash, managed by its Sinohydro Mineral Resource Group. Sinohydro reported US$9 billion in revenue in 2008.
Transparency Across the Fertilizer Value-Chain