MacDonald Mines Announces Closing of Private Placement Financing for Aggregate Gross Proceeds of $2,525,000
MacDonald Mines Exploration Ltd. (TSX Venture:BMK) ("MacDonald” or the "Company") announces the closing of a brokered and non-brokered financing for gross proceeds aggregating $2,525,000 through the issuance of 12,625,000 flow through units at $0.20 per flow through unit. Each flow-through unit is comprised of one common share and one-half of one warrant. Each warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.25 for a period of 2 years from date of issuance.
The financing were closed in three tranches.
A non-brokered private placement involving the issuance of 10,000,000 flow through units. In connection with the non-brokered private placement, the Company paid a finders’ fee of $160,000.00
A brokered private placement involving the issuance of 2,000,000 flow through units. IBK Capital Corp acted as the brokered agent.
In connection with the private placement, the Company paid compensation to IBK Capital Corp. as follows: A cash commission of 10% of the amount raised ($40,846 including expenses), and 10% of the units sold in the form of broker warrants (200,000 broker warrants). Each broker warrant entitles the holder to acquire one (1) Common Share of the Company at $0.20 per Common Share for a period of four (4) years from the date of issuance.
Insiders and related parties subscribed for 625,000 Flow-Through Units.
All securities to be issued in connection with this financing will be subject to a four month hold period from the date of issuance and to final regulatory approval.
The Corporation's primary use of the proceeds will be for upcoming exploration on its Nielsen-Chisholm Property located in the LaRonge District of Saskatchewan, the Assinica Property in Quebec, and its various properties in the McFauld’s Lake area of the James Bay Lowlands.
About MacDonald Mines
MacDonald Mines is a mineral exploration company with an established history in the exploration of gold and base metals. MacDonald has set upon a strategic direction of exploration in the Canadian Northlands, with particular focus on the “Ring of Fire” in James Bay, Ontario, its joint-venture with Virginia Mines in Quebec and now the LaRonge area in Saskatchewan.
In 2008, MacDonald Mines was ranked second in the TSX Venture 50’s Annual Ranking of Top Canadian Mining Companies and trades under the symbol BMK.
For more information, please contact
(416) 364-2753 (FAX)
Vice President, Business Development
J. Kirk McKinnon
President & CEO
Chief Operating Officer & CFO
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.