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Magma Energy's Subsidiary Completes Purchase Of 98.5% Of Iceland Geothermal Company HS Orka - Quick Facts

(RTTNews) - Magma Energy Corp. (MXY.TO) announced Friday that its wholly-owned subsidiary, Magma Energy Sweden A.B., closed the final portion of previously announced agreement to acquire further shares of Iceland geothermal company HS Orka hf.

Magma Sweden now holds a 98.53% interest in HS Orka.

In today's transaction, Magma Sweden acquired 14.32% of HS Orka's outstanding shares from Geysir Green Energy ehf by assuming a bond with the municipality of Reykjanesbaer with a principal value of ISK 6.3 billion repayable in 2016 with interest at 3.5% per annum.

The principal amount is indexed based on movements in aluminum prices on the London Metal Exchange, adjusted by one half the relative difference between the actual price, capped at US$3,250 per ton, and a reference price of US$1,500 per tonne.

MXY.TO is currently trading on the Toronto Stock Exchange at C$1.13, down $0.01 or 0.88%. Over the past year, the stock traded in a range of C$1.00 - C$2.06