TORONTO, ONTARIO--(Marketwire - April 4, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA
MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement (the "Offering") for total gross proceeds of $4,658,333, of which $3,619,333 was closed during the second and final tranche. Insiders to the Company had subscribed for $571,000 in the first tranche.
Pursuant to this Offering, the Company issued a total of 31,505,834 "flow-through" common shares at a price of $0.12 per common share and 7,978,484 common shares at a price of $0.11 per common share. The Company paid finder's fees in the form of cash compensation of $178,667 and issued 1,508,875 non-transferable compensation options, with each such compensation option entitling the holder to acquire one common share at a price of $0.12 per share for a period of 24 months following closing.
All securities issued pursuant to the Offering are subject to a restricted period of four months and one day from the date of issuance. The Offering is subject to receipt of final approval from the TSX Venture Exchange ("TSX-V").
In addition, on April 3, 2012 a total of 3,925,000 stock options were granted to directors, officers and consultants of the Company in accordance with the terms of the Company's incentive stock option plan filed with the TSXV and approved by shareholders on June 28, 2011. These options are exercisable at a price of $0.17 per share for a period of five years and are subject to a four month and one day hold period as required by the rules of the TSX-V.
About MacDonald Mines Exploration Ltd.
MacDonald Mines is a mineral exploration company with an established exploration history in the Canadian Northlands. MacDonald Mines has set upon a strategic direction of exploration with particular focus on nickel, chrome, copper, zinc, vanadium and titanium in the "Ring of Fire" area of the James Bay Lowlands of Northern Ontario.
With over 9 years of exploration in the James Bay Lowlands, the Company has systematically acquired quality land positions based on a very precise selection format that utilizes region-wide interpretations completed by geological consultant Hadyn Butler, P. Geo. MacDonald is now the second largest landholder in the Ring of Fire and has a proven track record of environmentally and socially conscious exploration practices.
MacDonald Mines exploration focus has been on 3 properties - the Butler, the Semple-Hulbert and the Sanderson. Recent exploration has been focused on the Butler property, where the Company has identified seven significant zones of multi-element mineralization, including copper-zinc VMS systems, vandiferous titano-magnetite and magmatic nickel sulphides.
The Company has established rapport with First Nation Communities in this region, which has culminated in the signing of exploration agreements with the Kasabonika Lake and Webequie First Nations.
More detailed information about the Company is available on the website: www.macdonaldmines.com.
The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines Exploration Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald Mines plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald Mines with the TSX Venture Exchange and securities regulators. MacDonald Mines does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. We seek safe harbour.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.