Magma Energy Corp. closes C$100 million initial public offering of common shares

Date Closed: 7/07/2009

Value: C$100 million

On July 7, 2009, Magma Energy Corp. successfully closed its initial public offering and its common shares commenced trading on the Toronto Stock Exchange. The common shares were also sold on a private placement basis to certain qualified investors in the United States.

Pursuant to the IPO, Magma issued 66,667,000 common shares at $1.50 per share for gross proceeds of $100,000,500.  An additional 6,933,334 common shares were issued on July 20, 2009 upon the exercise of the underwriters’ over-allotment option, providing Magma with additional proceeds of $10,400,001 for total gross proceeds of $110,400,501.

The underwriting syndicate for the offering was co-led by Raymond James Ltd. and Cormark Securities Inc., and included Canaccord Capital Corporation, National Bank Financial Inc., Dundee Securities Corporation, Jacob & Company Securities Inc. and Wellington West Capital Markets Inc.

Magma is a geothermal power company which is actively engaged in operating, developing, exploring and acquiring geothermal energy projects. It currently has one operating power generation plant (the Soda Lake Operation in Nevada), and an extensive portfolio of exploration properties throughout the western United States, Chile, Argentina and Peru.

Magma was represented by its in-house counsel, Lyle Braaten, and by BLG with a team led by Fred Pletcher that included Graeme Martindale, Michael Waters and Julianna Paik (securities) and Randy Morphy (tax).