In the Official Mage Wars Rule and Codex Supplement on Page 11:
Mage Death
Once a Mage dies, he cannot perform any further actions, pay mana costs, cast spells, make a counterstrike, etc.
Any enchantments and equipment attached to himself are immediately destroyed. Other objects he controls in
the game remain in play.
If a Mage dies, continue play until the end of that Phase (e.g. the Upkeep Phase, or the current creature's Action
Phase.) If all remaining Mages die before the end of that Phase, the game is a draw.
Example: In a two-player game, a Wizard with 1 remaining health and enchanted with Magebane casts an
attack spell on the enemy Warlock to kill him. The Warlock is killed and the Wizard will die from the Magebane,
and the game will be a draw.