GREY:MAAFF - Post by User
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Redpillon Apr 06, 2011 4:05pm
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Post# 18395360
MagIndustries Announces Sale of SNEL Receivable
MagIndustries Announces Sale of SNEL Receivable6M
TORONTO, ONTARIO, Apr 06, 2011 (MARKETWIRE via COMTEX News Network) --
MagIndustries Corp. ("MagIndustries" or the "Company") (TSX: MAA) is pleased to announce that it has sold forward the balance of its receivable from the Societe Nationale d'Electricite ("SNEL") for net proceeds of approximately US$6 million. As announced in the Company's September 15, 2010 press release, the Company's subsidiary MagEnergy Inc. and SNEL, the electric utility of the Democratic Republic of Congo, signed an Accord Transactionnel (the "Accord") which compensated the Company's for expenses incurred towards the refurbishment of SNEL's INGA II hydroelectric facility, principally the recently re-commissioned turbine G23. The Accord was signed in August 2010, and the Company has been receiving net proceeds of approximately $400,000 per month since then for total net proceeds, prior to the sale, of approximately $2.3 million.
Under the terms of the receivable sale agreement, the Company has received payment of approximately US$6 million, and the purchaser has agreed to assume and perform all obligations of the Company in respect of this receivable to its partners in the refurbishment project and indemnify the Company for any claims arising from these obligations.