21
Apr

MACDONALD MINES ANNOUNCES CLOSING OF $1,396,660 FLOW THROUGH AND UNIT FINANCING

MacDonald Mines (TSX VENTURE:BMK)

Richard Schler, the Vice-President & Chief Financial Officer of the Corporation, is pleased to announce that MacDonald Mines Exploration Ltd. (the "Corporation") (TSX VENTURE:BMK) has closed aggregate gross proceeds of $997,660 by way of a brokered private placement . The private placement consisted of 6,783,000 "flow-through units" of the Corporation (the "F/T Units") at a price of $0.12 per F/T Unit and 1,670,000 units (which are non-flow-through) of the Corporation (the "Units") at a price of $0.11 per Unit. Each F/T Unit consisted of one "flow-through" common share of the Corporation and one-half of one common share purchase warrant (the "F/T Warrants"). Each whole F/T Warrant will entitle the holder thereof to acquire one common share of the Corporation at a price of $0.18 for a period of 24 months from the date of issuance. Each Unit consisted of one common share of the Corporation and one share purchase warrant (the "Unit Warrants"). Each Unit Warrant will entitle the holder thereof to acquire one common share of the Corporation at a price of $0.15 for a period of 24 months from date of issuance.

In connection with the financing the Corporation paid Dundee Securities Corporation ("Dundee") a cash fee equal to $14,266 and issued 463,082 common shares of the Corporation to Dundee. Dundee also received broker warrants exercisable to acquire 591,710 common shares of the Corporation at a price of $0.12 per common share until April 19, 2008.

 

In addition, the Corporation has completed a non-brokered private placement for gross proceeds of $300,000, the terms of which are consistent with those of the offering of the F/T Units described above. The Corporation has also completed a non-brokered private placement for gross proceeds of $99,000, the terms of which are consistent with those of the Units described above. In connection with the financing the Corporation paid a finder's fee in "Units" equal to 9% of the gross proceeds.

The Corporation intends to use the gross proceeds from the sale of the F/T Units for exploration programs on its projects located in the James Bay Region of Ontario and the proceeds from the sale of the Units for working capital and general corporate purposes. Completion of the financings remains subject to regulatory approval. The securities issued under the financings will be subject to a four-month resale restriction in Canada.

ADMINISTRATION

The Board granted the issuance of 1,295,000 stock options to Directors, Officers and Consultants of the Corporation under the terms of an Incentive Stock Option Plan approved by shareholders at the last AGM held on June 27, 2005. The options are exercisable at $0.12 "per share" for a period of 4 years.

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.

 

For further information: please contact J. A. Kirk McKinnon, President and CEO (416)364-4986,(416) 364-2753 (FAX), , or Richard Schler, Vice President & CFO, (416) 364-4986, (416) 364-2753 (FAX), This email address is being protected from spambots. You need JavaScript enabled to view it. '; document.write(''); document.write(addy_text49165); document.write('<\/a>'); //-->\n This email address is being protected from spambots. You need JavaScript enabled to view it. , www.macdonaldmines.com/