September 7, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Magma Energy Corp. (TSX: MXY) (OTC: MGMXF) said that its wholly-owned subsidiary, Magma Energy Sweden A.B., has closed the final portion of an agreement to acquire further shares of Iceland geothermal company HS Orka hf. Magma Sweden now holds a 98.53% interest in HS Orka.

In the 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. The adjustment is equal to one half the relative difference between the actual price (capped at $3,250/tonne) and a reference price of $1,500/tonne, according to Magma.

Canada-based Magma Energy Corp. is a geothermal power company that operates, develops, explores and acquires geothermal energy projects. The firm has a portfolio of properties throughout the western United States, Iceland and Latin America. It has one operating power generation plant in Nevada (Soda Lake) and two more in Iceland (Svartsengi and Reykjanes).

Magma currently has 161 MW of geothermal power production.

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