News

Canadian Magma Energy Corp. filing preliminary prospectus for IPO

Alexander Richter 3 Jun 2009

Canadian Magma Energy Corp. is filing its preliminary prospectus for an initial public offering in Canada, hoping to raise around US$ 46 million (so market sources).

Reported on Monday, Canadian Magma Energy Corp. is filing its preliminary prospectus for an initial public offering.

According to the Wall Street Journal the company is seeking to raise a minimum of CAD50 million (US$ 46 million), based on sources in the market, and has – according to the prospectus already raised CAD 52.8 million (US$ 48.5 million) through private placements.

The release states that, “Ross J. Beaty, the Chairman and CEO of Magma Energy Corp., announced (today) that Magma has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada, other than the Province of Quebec, in connection with an initial public offering of its common shares.

The company announces further, that “a syndicate of underwriters, co-led by Raymond James Ltd. and Cormark Securities Inc., has been formed to manage the offering. The other members of the syndicate are Canaccord Capital Corporation, National Bank Financial Inc., Dundee Securities Corporation, Jacob & Company Securities Inc., and Wellington West Capital Markets Inc.

The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary
prospectus may be obtained from:

Raymond James Ltd., #5300, Scotia Plaza, 40 King St. West, P.O. Box 415, Toronto, Ontario M5H 3Y2,
Attention: Sarah Greer, Phone No.: (416) 777-7197; Fax (416)-777-7129; email:
[email protected], or: Cormark Securities Inc., #2800, South Tower, Royal Bank Plaza, Toronto,
Ontario, M5J 2J2, Attention: Ashley Filzer, Phone No.: (416) 943-6414; Fax (416) 943-6496; email:
[email protected]

The prospectus is available at www.sedar.com. There will not be any sale or any acceptance of an offer
to buy the securities until a receipt for the final prospectus has been issued.”

The preliminary prospectus is available on Sedar and contains details and financials for the company’s holdings and interests in the U.S. (Nevada, Utah and Oregon), as well as in Argentina, Chile and Peru.

Source: Company press release via sedar.com (new filings)