Magma Energy Completes Purchase of a Further Interest in Icelandic Geothermal Energy Producer HS Orka
In today’s transaction, Magma Sweden acquired 38.03% of HS Orka’s outstanding shares from Geysir Green Energy ehf in consideration for:
- payment today of 3,871,195,513 Icelandic Kroner ("ISK") (approximately US $32.3 million); - issuance today of 24,808,569 subscription receipts of Magma Energy Corp.; and - payment on November 30, 2010 of approximately 3,062,612,586 ISK (approximately US $25.6 million), subject to certain interest adjustments.
Each subscription receipt will convert into one common share of Magma Energy Corp. on
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
This news release contains certain “forward-looking information” within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance and prospects for closing our acquisition of a further interest in HS Orka. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management.
A number of known and unknown risks, uncertainties and other factors, may cause our actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information, including, but not limited to, risks that: conditions to closing Magma Sweden’s acquisition of a further interest in HS Orka may not be met; the government of
There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.
SOURCE Magma Energy Corp.