WSR Gold Inc. Announces Agreement with MacDonald Mines Exploration Ltd. to Acquire 75% of the Big Mac Property, McFauld’s Lake, Ontario
Toronto, Ontario – February 15, 2008; MacDonald Mines Exploration Ltd. (TSXV:BMK) (“BMK”) and WSR Gold Inc. (TSXV:WSR) (“WSR”) are pleased to announce that they have entered into a Letter of Intent pursuant to which WSR has agreed to acquire a 75% legal and beneficial interest in the Big Mac Property in the James Bay Lowlands. The Big Mac Property includes 701 Claim Units, approximating 11,200 hectares, in the “Ring of Fire”, McFauld’s Lake, Ontario, near Noront’s prolific nickel copper discovery.
In order to acquire its interest in the property, WSR is required to:
BMK shall have a carried interest until WSR delivers a pre feasibility study to BMK on the Big Mac Property. After the delivery of a pre feasibility study, BMK will be required to pay a pro rata portion of costs related to the property to maintain its 25% interest.
Closing of the transaction remains subject to WSR’s satisfactory due diligence, the approval of the TSX Venture Exchange and both BMK & WSR’s Board of Directors and execution of a definitive agreement of purchase and sale and joint venture agreement.
Kirk McKinnon, President and CEO of MacDonald Mines stated, “Management’s business model has always been one of maximizing high quality exploration activity in the most cost effective manner. Exploration success can only be achieved at the “end of a drill”, and this certainly provides the best opportunity for increasing shareholder value.
Having operated in James Bay for over 5 years we understand the costs and challenges associated with exploration in this Region. Included in these challenges is the management of exploration risk, share dilution as well as required technical personnel and infrastructure.
MacDonald Mines has an extensive land position, a significant number of high priority targets and are committed to explore not only our own property but also those of our Joint Venture partner’s, “Temex”, “Hawk” and “Baltic”.
Given this backdrop, we believe having WSR Gold as a strategic partner satisfies all of MacDonald’s core business objectives. WSR is prepared to start operating in James Bay immediately and have committed to allocate the necessary funds and personnel to conduct extensive, high quality exploration programs.
Our continued 25% ownership in the BigMac Property allows us to support, if needed, the exploration efforts planned by WSR.”
For further information please contact:
Brent Nykoliation, Director of Business Development
J. Kirk McKinnon, President & CEO
Richard Schler, Vice President and CFO
John Tait, President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of WSR are forward looking statements that involve various degrees of risk. The following are important factors that could cause WSR’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.