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Magma Energy shareholders approve merger with Plutonic Power

Magma Energy Maule drill site, Chile (source: Magma Energy)
Alexander Richter 28 Apr 2011

The shareholders of Magma Energy approved all resolutions in connection with the proposed merger with Plutonic Power Corp, as announced on March 7, 2011. Now only a court approval by the British Columbia Supreme Court is outstanding.

Announced this morning by Magma Energy Corp. (TSX: MXY), the company’s “shareholders approved at a special meeting held yesterday all resolutions in connection with its proposed merger with Plutonic Power Corporation announced on March 7, 2011.

In particular, Magma’s shareholders approved the issuance of up to 156,202,213 common shares of Magma (the “Arrangement Resolution”) in connection with the Arrangement which, if completed, will result in Magma acquiring all of the outstanding common shares of Plutonic in exchange for 2.38 common shares of Magma and $0.0001 in cash for each share of Plutonic. In addition, all outstanding stock options to purchase Plutonic shares will be exchanged for options to acquire common shares of Magma in accordance with the same exchange ratio. Magma shareholders also voted to approve the change of Magma’s name to “Alterra Power Corp.”, to increase the size of the board of directors of Magma to seven, and to elect Donald A. McInnes, Walter T. Segsworth and David S. O’Brien to the Magma board of directors.

The Magma shareholders approved the resolutions by well in excess of the required majorities: (a) 99.91% voted in favour of the arrangement resolution; (b) 99.70% voted in favour of the name change resolution; (c) 99.72% voted in favour of the board composition resolution; and (d) 99.90% voted in favour of electing each of the three new Magma board members.

Completion of the arrangement remains subject to certain conditions, including, the approval of the Plutonic shareholders at a meeting to be held today, and the approval of the British Columbia Supreme Court. An application for court approval is currently scheduled to be heard by the British Columbia Supreme Court on May 3, 2011.”

Source: Company release via e-mail