Magma Energy closes placement of US$20m for initial acquisition of stake in HS Orka

Alexander Richter 1 Nov 2009

Magma Energy Corp, completes private placement for aggregate net proceeds of US$20 million, with Magma's CEO, Ross Beaty, purchasing 25% of the common shares.

In a release, Magma Energy Corp, “announces the completion of the private placement announced on October 15, 2009. Magma issued 11,652,639 common shares at a price of C$1.85 per common share for aggregate gross proceeds of approximately C$21.56 million and net proceeds of C$20.78 million (US$20 million). Magma’s CEO, Ross Beaty, purchased 25% of the common shares issued pursuant to the private placement offering. All of the common shares issued pursuant to the offering are subject to a four-month hold period.

Proceeds of this financing will be used to finance Magma’s purchase of an initial 8.62% interest in the Icelandic geothermal company HS Orka, as announced on July 23, 2009. The acquisition of Magma’s further interest in HS Orka is expected to be completed in November.”

Source: Company release via PR-USA