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Gold/Mining/Energy : Magin Energy-MGY on TSE -- Ignore unavailable to you. Want to Upgrade?

To: Scott Mc who wrote (89)	5/4/2001 10:11:19 AM
From: Scott Mc	Read Replies (1) \| Respond to of 92

NCE Petrofund plans to acquire Magin NCE Petrofund NCF.UN Shares issued 55,060,513 May 3 close $6.63 Fri 4 May 2001 News Release Also Magin Energy Inc (MGY) Mr. John Driscoll reports NCE Petrofund and Magin Energy Inc. have signed a letter of intent whereby Petrofund will offer to purchase all of the issued and outstanding common shares of Magin. The offer will consist, at the election of the shareholder, of 0.896 of a unit of NCE Petrofund or $5.86 in cash per Magin share provided that the total cash component will not exceed $58.7-million and the total number of Petrofund units issued will not exceed 26.087 million. In the event that all shareholders elect cash, each shareholder will be prorated to 0.667 of a Petrofund unit plus $1.50 in cash per Magin share. Petrofund will also assume all of Magin's outstanding debt, working capital deficiency and capital lease obligations of approximately $34.5-million, after giving effect to a separate transaction currently being negotiated by Magin to sell its interest in the Copton property to an unrelated party. Based on the closing price of Petrofund units on May 3, 2001, of $6.63 per unit, the total enterprise value of the transaction is approximately $266-million.