Toronto, Ontario – August 8, 2016 - MacDonald Mines Exploration Ltd. (TSX-V: BMK) (“MacDonald Mines”, “MacDonald” or the “Company”) is pleased to announce that the Company has signed a definitive agreement with Noront Resources (TSX-V: NOT) (“Noront”), subject to the approval of the TSX Venture Exchange, in which Noront will acquire a 75% interest in all of BMK’s properties in the Ring of Fire district.
The properties principally consist of two separate blocks of claims: the Butler Property (77 claim units) and the Sanderson Property (70 claim units). The Butler Property covers a very prolific belt of felsic volcanic rocks which host four known zinc-copper rich volcanogenic massive sulphide (VMS) occurrences. The Sanderson property covers a large ferro-gabbro intrusion (the “Big Mac” intrusion) and possible footwall ultramafic intrusion similar in scale to the Black Thor intrusion and which is prospective for nickel-copper as well as chromite deposits.
Noront will issue $750,000 of its common shares to MacDonald Mines to earn its 75% interest in the properties. MacDonald Mines will have a 25% carried interest until the issuance of a NI43-101 resource on one of the properties, at which time it will have the option to convert the carried interest into a 1% NSR (the Conversion Right). If MacDonald Mines does not elect to exercise its Conversion Right, Noront can elect to buy back MacDonald’s 25% interest for $3 million (the Buy-back Right), payable in cash or shares. If neither the Conversion Right nor the Buy-back Right are exercised, a Joint Venture arrangement will be formed to develop the properties.
MacDonald’s President and CEO, Quentin Yarie commented "It’s been a pleasure to do business with Noront. This transaction will enable MacDonald Mines to pursue its technical and material interests in the Ring of Fire and allow the Company to re-focus its efforts in the search for other exploration properties of interest."
About MacDonald Mines Exploration Ltd.
MacDonald Mines Exploration Ltd is a mineral exploration company headquartered in Toronto, Ontario, Canada. The company is strategically focused on Copper and Zinc (VMS), and Nickel exploration in the Ring of Fire area of the James Bay Lowlands of Northern Ontario. The Company's common shares trade on the TSX Venture Exchange under the symbol "BMK".
For more information, please visit our website at www.macdonaldmines.com.
Safe Harbour: This press release contains statements that may constitute “forward-looking statements” within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.