Magma closes private placement to buy stake in HS Orka

In Canada, Magma Energy Corp. completed a private placement announced on October 15. The company issued 11,652,639 common shares at a price of $1.74 per share for gross proceeds of about $20.2 million and net proceeds of $19.5 million. The proceeds will be used to finance Magma’s purchase of an initial 8.62% interest in geothermal company HS Orka, as announced in July. Magma expects to close the acquisition of a further interest in the Icelandic company is expected to be completed in November. Magma’s CEO, Ross Beaty, purchased 25% of the common shares and all of the common shares issued are subject to a four-month hold period.