Magma makes credit deal with its CEO

In Canada, Magma Energy Corp. said that it has entered into a credit agreement with company chairman and CEO Ross Beaty, where the company will borrow up to $10,000,000 to pay amounts coming due to Geysir Green Energy. Those payments are for the acquisition of shares of HS Orka, as well as to fund general working capital requirements of Magma. Interest at the rate of 8%/year, compounded daily, is payable monthly starting on July 30. In addition, a 1% standby fee and a 1.5% drawdown fee are payable in cash. The principal amount has already been advanced to the company to be used in connection with the acquisition of HS Orka shares.