MacDonald Mines and JV Partners Acquire Land Positions with Similar Geology to the Spectacular Noront Nickel-Copper Discovery in Northern Ontario
TORONTO, ONTARIO-- MacDonald Mines (TSX VENTURE:BMK) is pleased to announce the signing of a Letter of Agreement with Baltic Resources Inc. (TSX VENTURE:BLR) and Temex Resources Corp. (TSX VENTURE:TME) as Joint Venture partners in newly acquired properties in the Webeqie area of the James Bay Lowlands.
In a 50-25-25 joint venture with Baltic Resources, Temex Resources Corp, MacDonald has acquired a further 3 separate parcels of land comprising over 50 claim blocks which represents approximately 12,500 hectares. Under the terms of the agreement, the parties agree to enter into a formal Joint Venture. MacDonald Mines will be the Operator for the Joint Venture and all costs for the acquisition and exploration of the properties will be shared on a 50/25/25 basis for Baltic, Temex and MacDonald Mines respectively. The Joint Venture will form immediately upon payment of the acquisition costs by all parties in accordance with the respective participating interest. A standard dilution clause will be incorporated into the agreement and any party whose participating interest is reduced to less than 10% will have its interest converted to a royalty.
The terms of the agreement are subject to TSX Venture Exchange approval.
The properties were staked to reflect an optimum geological setting for potential nickel/copper deposits. This land acquisition strategy positions MacDonald with further nickel-sulphide-potential properties, skilled and experienced business partners and strategic risk spreading for this important but remote mining region of Ontario.
MacDonald and its joint venture partners now have strong land positions covering favorable geology for both nickel and massive sulphide deposits with potential for further discoveries.
EXTENSIVE AIRBORNE SURVEY
MacDonald Mines (as the operator of the Baltic - Temex - MacDonald joint venture) is now coordinating an extensive airborne geophysical survey over the newly acquired claim blocks. This airborne survey is scheduled to commence in the first half of October of this year. Fugro Airborne Surveys has been contracted to conduct a HeliGEOTEM time-domain electromagnetic survey over the newly acquired properties at 100 meter line spacing.
Bill Nielsen P. Geo., Director of MacDonald will manage the exploration team for the Joint Venture.
The Board granted the issuance of 1,350,000 stock options on October 4, 2007 to Directors, Officers and Consultants of the Corporation under the terms of an Incentive Stock Option Plan filed with the TSX Venture Exchange and approved by shareholders at the last AGM held on June 12, 2007. The options are exercisable at $0.285 "per share" for a period of 4 years and are subject to a four month hold period from the date of issuance.
WARNING: 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.