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[Dognamedabu]

I got in MAA @ .57 then DCA to .495.. It was nice catching them on sale

Originally Posted by AdamJ Trading Halted. Most likely an early closing on the new share offering.

[AdamJ]

My initial position is around $0.56 but, I haven't taken my full position. Without continuing positive news and if potash contracts come in lower I suspect we could see it back around $0.40 within the next month or two.

[daveking]

HOT OFF THE PRESS

MagIndustries Corp. Announces it Has Signed a Memorandum of Understanding With a Strategic Party: Financial News - Yahoo! Finance

MagIndustries Corp. Announces it Has Signed a Memorandum of Understanding With a Strategic Party
Friday June 12, 1:19 pm ET

TORONTO, ONTARIO--(Marketwire - June 12, 2009) - MagIndustries Corp. (the "Company") (TSX VENTURE:MAA - News) is pleased to announce that it has signed a Memorandum of Understanding ("MOU") with a strategic party (the "Subscriber") that intends to subscribe for 400 million MagIndustries shares at a price of Cdn$0.70.

Closing of the transaction contemplated by the MOU is subject to a number of conditions and approvals which include approval of the transaction by MagIndustries' Board of Directors, approval by a majority of MagIndustries shareholders at a special meeting of shareholders, all relevant regulators and government authorities and satisfactory completion of due diligence. The share subscription is also conditional on the Subscriber arranging substantially all of the debt financing required for the completion of Phase I of the Company's Kouilou Potash Project in the Republic of Congo (the "Project") as an alternative to debt financing that might be available to the Company from other sources.

The Company would be in a fully funded position with respect to the Project if the transaction contemplated by the MOU is completed.

The MOU outlines the intentions and principal terms of investment in anticipation of finalizing and executing definitive documentation. Upon conclusion of the investment, the Subscriber would hold approximately 52.7% of the Company's common shares outstanding (after giving effect to MagIndustries' recently announced equity financing, assuming the full exercise of the over-allotment option). Further details relating to the transaction will be provided in a future press release.

[Dognamedabu]

This news release News & Events you posted Adam looks like they are increase prod. costs but balancing them out with higher projections on potash. I think this is going to be a sleeper(did I speak too soon?) as well, but I am comfortable in keeping 30,000 shares parked here.

[Poldermol]

This is OUR TIME!

[AdamJ]

Ahhh crap! Story of my life. Somebody is getting one hell of a deal on those 400 million shares. A $280 million investment with at least a $10 billion dollar upside in five to ten years.

Must be Lattes or Sawri out buying shares again?

[daveking]

Doing some research on POTASH it was actually started in Africa.

From wikipedia:

Since the 14th century, potash was widely produced by Ethiopia. It was their number one export up until the 20th century; however after the Ethiopian War against Kenya it became irrelevant. Potash was one of the most important industrial chemicals in Canada.

Canadian company mining potash in Africa. Using cheap labour and selling fertilizer to Chinese farmers.

This company has a great future!

[Dognamedabu]

ALLANA RESOURCES INC

Allana Resources Inc. - Developing Global Potash Assets
AAA - ALLANA RESOURCES INC - Google Finance



They claim to have 100 million tonnes in Africa, they have a Chinese website and other than that it is pretty much a spec stock with a little grit

Can't find financials, haven't looked at this that hard but when you said Chinese I thought of these guys

QUOTE=daveking;16777]Doing some research on POTASH it was actually started in Africa.

From wikipedia:

Since the 14th century, potash was widely produced by Ethiopia. It was their number one export up until the 20th century; however after the Ethiopian War against Kenya it became irrelevant. Potash was one of the most important industrial chemicals in Canada.

Canadian company mining potash in Africa. Using cheap labour and selling fertilizer to Chinese farmers.

This company has a great future![/QUOTE]

[AdamJ]

The problem with Allana is that they are still exploration stage and haven't presented any type of development plan with target dates. Although this deal for Mag should draw some attention to them, my thinking is that they are still overpriced.

All the reserves that MAA talk about is only a fraction of their total exploration area. They will be producing 1.2 million tonnes by 2014 but, the real question is how much will they be producing beyond that date and what type of expansions will be in the works by then.

[daveking]

Even at .70 there is a big upside to this company. I'm holding it for the long term maybe 3-4 years until this thing reach $5.

The Chinese are the subscriber.

TORONTO, ONTARIO--(Marketwire - June 15, 2009) - MagIndustries Corp. ("MagIndustries" or the "Company") (TSX VENTURE:MAA) is pleased to provide further details with respect to the Memorandum of Understanding ("MOU") announced in its press release of June 12, 2009.

The Company entered into the MOU with a large Chinese based multi-national company (the "Subscriber") that intends to subscribe for 400 million MagIndustries shares at a price of Cdn$0.70. Although the MOU does not itself serve as a binding obligation in respect of the share subscription, the terms contained therein will serve as the basis for the negotiation and finalization of definitive documentation. MagIndustries has agreed to negotiate exclusively with the Subscriber until the earlier of July 31, 2009 and the date definitive documentation is entered into.

Source: Company reports, RBC Capital Markets estimate

Target Price Increased to Reflect Inclusion of Potash Project
We have increased our target price for MagIndustries from C$0.75 to C$1.25 to reflect the inclusion of the potash project in our valuation. We believe the probability of the project proceeding to construction has significantly increased with the Memorandum of Understanding with a strategic party in place. Assuming an unlevered equity discount rate of 15% and a holding company discount of 25%, we estimate a net asset value (NAV) for MagIndustries of approximately C$1.25/share as at June 30, 2010 as shown in Exhibit 1. The valuation impact of the potash project is lower than we had previously forecast as we had assumed equity would be raised at the potash project level after the completion of the necessary debt arrangements resulting in less dilution.