News
Oct 15, 2009Magma raises C$21.5 mln to fund stake in HS Orka
CanGEA Member, Magma Energy Corp., purchases stake in Iceland’s HS Orka. Whole story (from Reuters) below.
OTTAWA, Oct 15 (Reuters) - Canadian geothermal power company Magma Energy Corp (MXY.TO) said on Thursday it will use funds from a C$21.5 million ($20.8 million) private placement for its purchase of a stake in Iceland’s largest privately owned energy company, HS Orka.
Net proceeds of C$20.78 million will fund Magma’s initial purchase of an 8.62 percent stake in HS Orka. That deal is expected to close before the end of October.
In August, Magma said it would acquire an additional 32 percent share of the geothermal energy producer. That acquisition is expected to be completed in November.
Magma Chief Executive Ross Beaty will buy 25 percent of the placement of 11.65 million shares priced at C$1.85 apiece.
Magma, which is seeking to boost its geothermal power production capacity, raised C$100 million in an initial public offering in July.
About Magma Energy Corp.
Magma Energy Corp is a geothermal energy company focused on exploration, development, acquisition and operation of geothermal energy projects globally. The Company currently owns one operating geothermal plant and an extensive portfolio of geothermal exploration and development projects in Argentina, Chile, Peru and western USA and is actively expanding its projects portfolio worldwide.
