TORONTO, ONTARIO -- (Marketwired) -- 04/06/15 -- MagIndustries Corp. (TSX: MAA) (the "Company" or "MagIndustries") announced today that further to its press release of February 9, it has continued discussions with a potential investor, Qinghai Salt Lake Industry Company Limited ("Salt Lake"), which is an A share listed company on the Shenzhen Stock Exchange focused on the manufacture and distribution of chemical fertilizers primarily in China.
Under a signed Confidentiality Agreement, Salt Lake has conducted due diligence in various areas with respect to the Company and its Mengo Potash Project (the "Project"), including mineral resources, technical, financial, legal, political and environmental matters. Discussions and demonstrations concerning the Project and a potential investment by Salt Lake are underway with the assistance of Evergreen Resources Holding (BVI) Ltd. ("Evergreen"). Evergreen is the controlling shareholder of MagIndustries, owning approximately 86% of the outstanding common shares. There is no certainty that an agreement can be reached upon terms of any particular investment in the assets or securities of MagIndustries.
About Qinghai Salt Lake Industry Company Limited
Salt Lake is controlled by the Qinghai State-owned Assets Supervision and Management Commission. Salt Lake is the largest domestic producer of potash in China based on operations located on Chaerhan Salt Lake, the biggest inland dry salt lake in China.
Also known in China as Salt Lake Stock, with stock code 000792 and previously known as Qinghai Potash Factory, Salt Lake was listed on the Shenzhen Stock Exchange on September 8, 1997.
Salt Lake is a large modern group, combining development of salt lake resources, potash production and distribution, resource recycling, industrial project construction, logistics services and responsible capital management. The current registered capital is 1590.5 million RMB with legal representative of Xingfu WANG. The Company is capable of producing 3.5 million tons of KCl per year. For more information, please refer to the company website, www.qhyhgf.com.
About MagIndustries
MagIndustries is a Canadian company whose common shares are listed on the TSX and trade in Canadian currency under the symbol "MAA". The Company has 755,942,674 common shares outstanding. MagIndustries is focused on the development of its potash assets in the Republic of Congo, principally the 1.2 million tonne per year Project under construction near Pointe Noire, Republic of Congo. More information on the Company is available on its website, www.magindustries.com.
Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, country policy and political risks, currency exchange risk, changing market conditions, force majeure events, and other risks detailed from time-to-time in the Company's ongoing filings including the ongoing criminal investigation announced in the Company's press release of January 29, 2015. Specifically with respect to this press release, an investment in the Company is subject to due diligence, various national, regulatory and company approvals as well as agreement between the parties on terms and conditions. Project funding is necessary for the Project to proceed and there is a risk the Company and its prospective lenders or investors may not agree on final terms and conditions in the definitive loan or investment documentation. Additionally, approval for Project funding, when or if finalized, may not be in a timeframe that allows the Project to proceed on the expected schedule. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under the Company's continuous disclosure obligations. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.
Cusip: 55917T 102
Contacts:
MagIndustries Corp.
Mr. Rich Morrow
Director, Investor Relations and Corporate Development
416-368-7911
rmorrow@magindustries.com
www.magindustries.com
