MacDonald Mines Partners with Co-Discoverer of Voisey’s Bay Adds Key Ground in the “Ring of Fire”, James Bay Lowlands
Toronto, Ontario – MacDonald Mines Exploration Ltd. (TSXV:BMK) (“MacDonald”) and 1289839 ALBERTA LTD (“Alberta Ltd.”), an Alberta corporation, and wholly owned subsidiary of Coordinates Capital Corporation (“CCC”), owned and operated by Chris Verbiski, and VP Morton Verbiski, are pleased to announce that they have entered into a Letter of Agreement pursuant to which MacDonald has agreed to acquire a 60% undivided right, title and interest in a new land position in the James Bay Lowlands. The new property, “Wellington West” consists of approximately 528 unpatented claim units totalling approximately 8,250 hectares southwest of, and directly contiguous to the Wellington Property in the “Ring of Fire”, Northern Ontario, near Noront’s prolific nickel-copper-PGE discovery.
Kirk McKinnon, President and CEO of MacDonald Mines stated, “We are very pleased to have concluded a Letter of Agreement outlining the principle terms of agreement between Alberta Ltd. and MacDonald. The CCC team is a seasoned and very knowledgeable group. They are very well funded and have a bias for action as demonstrated in their very rapid staking program in the James Bay Lowlands. MacDonald is well aware that the ground staked by Alberta Ltd., was of significant interest and had committed to stake this ground in initial staking efforts. This arrangement reflects MacDonald’s ongoing efforts to add very successful mining individuals whose skills will enhance our exploration and business initiatives. The CCC team will add considerable insights into nickel exploration, gleaned from their experience with their very successful Voisey’s Bay discovery and delineation.”
MacDonald will be contracting an airborne geophysical survey to fly the newly acquired claims and will follow up immediately with ground geophysical surveys over the most promising targets.
In order to acquire its interest in the property from Alberta Ltd, MacDonald is required to:
a) make cash payments of $280,000 to Alberta Ltd. as follows:
b) issuance to the Alberta Ltd. of 2,000,000 MacDonald free-trading (subject to the required 4 month hold period) fully paid and non-assessable common shares and 1,000,000 warrants to purchase 1,000,000 MacDonald free-trading fully paid and non-assessable common shares, as follows:
c) incur an aggregate work commitment of two-million ($2,000,000) on the property as follows. (Note: Any work commitment expenditures in excess of the required amounts will be carried over)
Alberta Ltd. shall have a carried interest until MacDonald has spent an aggregate of $3,000,000 in exploration expenditures on the Property in addition to the aggregate work commitment of $2,000,000 required to satisfy the “option” as described in item c) above. Once the aggregate exploration expenditure of $3 million has been satisfied, then each party will be responsible for contributing to future exploration expenditures based on their respective participating interests in the Joint Venture arrangement.
Closing of the transaction remains subject to MacDonald’s satisfactory due diligence, the approval of the TSX Venture Exchange, and both MacDonald & CCC’s Board of Directors and execution of a definitive agreement of purchase and sale and joint venture agreement.
For further information please contact:
Brent Nykoliation, Director of Business Development
MacDonald Mines Exploration Ltd., 416.364.7024
J. Kirk McKinnon, President & CEO
MacDonald Mines Exploration Ltd
Richard Schler, Vice President and CFO
MacDonald Mines Exploration Ltd
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
Forward Looking Statements:
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 MacDonald are forward looking statements that involve various degrees of risk. The following are important factors that could cause MacDonald’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.