ASX RELEASE2nd April 2008ASX Code: QMGQUAY MAGNESIUM...

ASX RELEASE
2nd April 2008
ASX Code: QMG
QUAY MAGNESIUM LIMITED
ANNOUNCES SHARE SUBSCRIPTION AND RIGHTS ISSUE
The directors of Quay Magnesium Limited (Quay) wish to announce that as part of the ongoing
review of working capital requirements ,including due diligence and other expenses relating to
the previously announced acquisition of a 49% stake in a Chinese pure magnesium producer,
they have today successfully entered subscription agreements for the placement of 26,600,000
new ordinary fully paid shares at $0.05 each to institutional and sophisticated private investors.
The placement will raise $1,330,000 and the funds will be used for the purposes mentioned
above. Total costs of $14,000 are associated with this issue. Quay will not be seeking
shareholder approval in relation to the new issue.
The new shares will rank equally with existing ordinary shares from their date of issue. Following
the issue of shares under this placement Quay will have 203,935,511 shares on issue.
Quay also announces that as part of working capital requirements, it will make a 1 for 4 non
renounceable rights issue to existing shareholders with the Board reserving the right to place
any shortfall in the rights issue to institutional and sophisticated private investors (Rights Issue).
Quay will further advise shareholders when details of the Rights Issue are finalised.
For further information contact:
Mr Peter Stuntz
Chairman
Tel: 02 8274 0900
Quay Magnesium Limited
www.quaymagnesium.com