Toronto-MagIndustries Corp. has confirmed that TSC Capital Ltd., Tortola, BVI, has opted to terminate due diligence that would have led to a 55 percent majority stake in Mag. Mag would have used the C$185 million in proceeds to finance the construction of the Mengo potash mine in the Republic of Congo. Chinese investors have also gone down the investment path with Mag, but have bailed as well (GM Feb. 8, Sept. 6, 2010). TSC says it does reserve all other rights granted to it pursuant to the letter of intent between TSC and MagIndustries dated December 21, 2010, including under the common share purchase warrants. Each warrant entitles TSC to acquire one common share in the capital of the company at an exercise price of C$0.32 per common share at any time until December 21, 2011. The issuance of the warrants was completed in conjunction with the issuance of one common share in the capital of the company at a price of C$0.32. If exercised in full, the common shares issuable to TSC pursuant to the warrants will bring TSC’s ownership of Mag to approximately 19.9 percent of the issued and outstanding shares. In other news last week, Mag reports that Bill Burton, the founder of the company, has resigned his position as a director effective immediately. Rich Morrow, current MagIndustries CEO, will take his place as a director.
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