TORONTO, CANADA–(EMWNews – July 16, 2008) – MagIndustries Corp. (“MagIndustries or the “Company”)(TSX VENTURE:MAA) is pleased to announce that it has obtained assured access to a sufficient quantity of natural gas in the Republic of Congo (ROC) to support MagMinerals’ Phase I and Phase II potash mining and processing operations and MagMetals proposed magnesium smelting operation.
This announcement comes as the result of an important and decisive meeting in Milan, Italy on June 7, 2008 at which MagIndustries was a participant. The meeting was convened by the ROC Government to discuss the availability of natural gas in Congo, in sufficient quantity to support both the broader electrification of the country and to support new industrial development. The Milan meeting was reported in a Press Release earlier today, July 16, 2008, by the ROC Government.
The Milan meeting was attended by delegations from the ROC Government, Eni S.p.A. and Eni Congo S.A. (“Eni”), MagIndustries, and various other interested parties. The ROC Government was represented by Mr. Pierre Oba, the Minister of Mines, the Mining Industry and Geology and by Mr. Bruno-Richard Itoua, the Minister of Energy and Hydraulics, together with their technical experts.
Eni confirmed the availability of natural gas in quantity and quality to fuel a proposed electrical generating plant near Pointe-Noire and to supply companies participating in the industrial development of the ROC, particularly MagMinerals Potash Corp’s planned Phase 1 and Phase 2 potash operations and MagMetals Inc.’s proposed magnesium smelter. Further, Eni confirmed that such gas would be made available to MagIndustries’ operations at a price and under terms to be determined by the ROC Government.
Detailed minutes of the meeting were subsequently circulated for signature by all of the attending parties, resulting in a Proces Verbal.
Representatives of Eni and MagIndustries have followed through with detailed technical meetings to develop a plan for the implementation of the Milan discussions, initially through a Memorandum of Understanding between the two companies, to be followed by a gas supply agreement. The MOU is approaching the signature stage, with the expectation that it will be the basis for a detailed natural gas supply contract.
Cusip: 55917T 102
An English translation of the Republic of Congo Press Release is provided below, followed by the original text in French.
Brazzaville, July 16, 2008
An important meeting occurred on June 7, 2008, in Milan Italy, bringing around the same table, a delegation from the Congolese government, management and technical experts from ENI-Congo S.A. and MagIndustries, of which MagAlloy is the Congo based subsidiary for the exploitation of potash.
The Congolese government was represented by Mr. Pierre Oba, the Minister of Mines, the Mining Industry and Geology and by Mr. Bruno-Richard Itoua, the Minister of Energy and Hydraulics, accompanied by their experts.
The purpose of the meetings was to re-evaluate the natural gas produced as a result of ENI-Congo S.A.’s activities in Congo, looking toward making electricity accessible for civil use and gas as a means to stimulate industrial development in Congo.
The Congolese government is pleased with the importance and the significance of the conclusions of these meetings – which it considers to be decisive steps toward ending the flaring of natural gas and toward the controlled production of this energy source.
ENI-Congo S.A. confirmed the availability of natural gas in quantity and quality sufficient to fuel the thermo-electric plant at Djeno and to supply companies participating in the industrial development of Congo.
Three objectives pursued by the President of the Republic will be attained:
– the supply of electricity of good quality to the general population at a good price
– making electricity available for industrial companies in Congo
– the management of gas production and its application as a stimulus for industrial development, which is additionally the key to eliminating flaring, contributing to international efforts in the fight against pollution and global warming.
In terms of industrial development, the Congolese government notes with interest, the availability of natural gas announced by ENI-Congo S.A. as benefit for MagAlloy in its sure progress on its potash production project.
The return of this industrial activity to Congo is a point of satisfaction for both the government and the Congolese people, above all at a time where the food crisis calls for the urgent production of fertilizer. With this industry, Congo will contribute to the struggle for universal food security, which was highlighted by President Denis Sassou Nguesso in his address to the conference on food security in Rome on June 4, 2008. The government of Congo supports without reserve the important MagAlloy project which carries the hopes of diverse sectors of Congolese society. To that end, the Governmant of Congo will spare no effort toward the harmonious and happy realization of this project.
Minister of Mines, the Mining Industry and Geology
Republic of Congo
Brazzaville le 16 Juillet 2008
Le 07 juin 2008, se sont deroulees a Milan (Italie) d’importantes reunions ayant regroupe autour d’une meme table, d’une part la delegation du gouvernement congolais et d’autre part les dirigeants et experts de ENI-CONGO S.A et MAGINDUSTRIES dont MAGALLOY est la filiale au Congo pour l’exploitation des sels de potasse.
Le gouvernement congolais etait represente par le Ministre des Mines, des Industries Minieres et de la Geologie, monsieur Pierre OBA et le Ministre de l’Energie et de l’Hydraulique, Bruno – Richard ITOUA, qu’accompagnaient leurs experts.
Ces reunions ont eu pour toile de fond la revalorisation du gaz congolais dont ENI-CONGO SA est l’operateur, ce dans l’optique de vulgariser l’usage de l’electricite par les menages et la stimulation du developpement de l’industrie au Congo.
Le gouvernement congolais se rejouit de l’importance et de la pertinence des conclusions de ces rencontres qu’il considere comme decisives dans le processus vers la fin du torchage du gaz et la production maitrisee de cette source d’energie.
En effet ENI-CONGO S.A a confirme la disponibilite du gaz en quantite et en qualite utiles pour alimenter la centrale electrique de Djeno ainsi que la fourniture aux societes, dans le cadre du developpement industriel du Congo.
Le triple objectif poursuivi par le President de la Republique sera ainsi atteint, a savoir :
– la fourniture d’electricite de bonne qualite et a bon prix aux populations, avec la construction de la centrale electrique du Congo ;
– la mise a disposition de l’electricite aux societes pour leurs activites industrielles au Congo.
– la maitrise de la production du gaz et sa valorisation dans le cadre du developpement industriel, avec a la cle l’eradication du torchage du gaz, afin de contribuer aux efforts internationaux dans la lutte contre la pollution et le rechauffement de la planete.
En matiere de developpement industriel, le gouvernement congolais a note avec interet, la disponibilite du gaz annoncee par ENI-CONGO SA au profit de la societe MAGALLOY qui progresse surement dans son projet d’exploitation de la potasse.
Le retour de cette activite industrielle au Congo est un motif de satisfaction pour le gouvernement et le peuple congolais, surtout au moment ou la crise alimentaire mondiale rend capitale et urgente la production d’engrais. Avec cette industrie, le Congo contribuera a la lutte universelle pour la securite alimentaire tel que mis en relief par le President Denis SASSOU NGUESSO dans son discours a la conference sur la securite alimentaire a Rome le 04 juin 2008. Le gouvernement congolais appuie donc sans reserve, l’important projet de MAGALLOY porteur d’espoirs dans les divers domaines de la vie nationale. A cet effet, le gouvernement congolais ne menagera aucun effort pour l’evolution harmonieuse et la realisation heureuse de ce projet.
Ministre des Mines, des Industries Minieres et de la Geologie
Republique du Congo
About MagIndustries Corp.
MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX-V Exchange and trades in Canadian currency under the symbol “MAA”. The Company has 197,514,016 shares outstanding on an undiluted basis. MagIndustries’ wholly owned resource subsidiaries are operating and developing major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC).
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, changing market conditions, and other risks detailed from time-to-time in the Company’s ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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