Magma aiming at $40 million for more HS Orka

In Canada, Magma Energy Corp. has entered into an underwriting agreement and filed an amended and restated preliminary prospectus with the securities regulatory authorities with respect to the issuance of 35,714,286 common shares at a price of $1.12 per share, for gross proceeds of $40,000,000. Closing is scheduled to take place on July 27, 2010. The net proceeds from the are intended to be used for Magma’s acquisition of 52.35% of the outstanding shares of HS Orka hf from Geysir Green Energy, as well as for working capital and general corporate purposes. Magma currently owns about 46% of HS Orka, a geothermal plant in Iceland that produces 175 MW of power and 150 MW of thermal energy for district heating.