In a release by the company, “Magma Energy Corp. (TSX:MXY) announces that it has agreed, subject to regulatory approval, to a private placement of 11,652,639 shares at a price of $1.85 per share to raise gross proceeds of $21.56 million and net proceeds of $20.78 million (US$20 million). A 5% finders fee will be paid on a portion of this placement. The shares will be restricted from trading for four months following issuance. Magma’s CEO Ross Beaty has agreed to purchase 25% of such placement. Closing of the private placement is expected to occur on or about October 22, 2009.
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. Closing of this initial purchase is expected to occur before the end of October once the closing conditions of the initial purchase have been met. The acquisition of Magma’s further interest in HS Orka remains subject to similar conditions and is expected to be completed in November.”
Source: Company anouncement