(Toronto, ON, Canada, March 17, 2011) - MacDonald Mines Exploration Ltd. (TSX.V: BMK) (“MacDonald” or the “Company”) announces that its Board of Directors (the “Board”) approved the adoption of a shareholder right plan (the “Plan”) dated March 17, 2011.
The purpose of the Plan is to provide both shareholders and the Board sufficient time to adequately consider a take-over bid and to allow for competing and alternative proposals to emerge during the period between the announcement of the proposed take-over bid and the period of review allowed within the Plan. The Plan is similar to those adopted by other Canadian public companies, and MacDonald is currently unaware of any party contemplating or preparing a proposal to acquire control of the Company. The Board had previously approved the adoption of a shareholder rights plan on August 6, 2010, which plan terminated on February 6, 2011.
At the close of business on March 17, 2011, existing shareholders of the Company were granted Rights to acquire additional common shares. The Rights were granted for no cash. These Rights are attached to each share as long as the Plan remains in effect. Each subsequent shareholder who invests in the Company’s common shares will also be entitled to the Rights for no consideration.
The value of these Rights are that they allow shareholders, other than the take-over bidder, to purchase, at the Exercise Price one common share of the Company for each common share held. This Right is triggered only if a party attempts to acquire 20% or more of the outstanding shares of the Company and this proposed acquisition does not meet the Permitted Bid requirements set forth within the Plan. Under the Plan, bids that meet certain requirements intended to protect the interests of all Shareholders are deemed to be Permitted Bids. Permitted Bids must remain open for 60 days and must be made by way of a take-over bid circular prepared in compliance with applicable securities laws.
The Board’s approval of the Plan is subject to the TSX Venture Exchange’s acceptance and will remain in place for six months. It is the Company’s intention to seek approval of the Plan from the shareholders at the next Annual and Special meeting of shareholders to be held on or prior to June 30, 2011.
All capitalized terms within this press release without definition have the meanings attributed to them in the Plan. The shareholder rights plan will be available on SEDAR shortly for those shareholders who wish to view the document in its entirety.
About MacDonald Mines Exploration Ltd
MacDonald Mines is a mineral exploration company with an established exploration history in the Canadian Northlands. MacDonald Mines has set upon a strategic direction of exploration with particular focus on nickel, chrome, copper, zinc, vanadium and titanium in the “Ring of Fire” area of the James Bay Lowlands of Northern Ontario. Hadyn Butler, P.Geo. played the key role in providing the necessary insight into the land acquisition of MacDonald’s properties in the Ring of Fire. His experience and skills in interpreting geologic areas of economic interest also led to the acquisition of the Semple-Hulbert property.
As detailed in the Company’s recent press releases, MacDonald has multiple mineral plays across multiple properties in the James Bay Lowlands. On its Butler Property, new volcanogenic massive sulphide (VMS) mineralization of substance has been discovered. Four VMS mineralized greenstone fold limbs, all of which have now yielded VMS mineralization over a potential cumulative strike length of approximately 20 kilometres, have been identified and the Butler Property has the potential to host a new VMS camp with characteristics similar to those seen at Matagami or Noranda in Quebec.
MacDonald’s highly prospective Semple-Hulbert Property contains very conductive and discrete targets within a layered magnetic structure, which is typical of magmatic massive sulphides containing nickel. The Semple-Hulbert appears to have the potential to host a Voisey’s Bay-type nickel deposit.
The Company’s Sanderson Property exhibits high-priority nickel and copper targets with geological and geophysical signatures similar to the significant chrome discoveries of Freewest and KWG Spider.
On March 17, 2011, a total of 750,000 stock options were issued to directors and consultants of the Company in accordance with the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders of the Company on June 17, 2010. The options are exercisable at a price of $0.16 per share for a period of five years.
The Company wishes to clarify its February 16, 2011 press release and note that the expiry date for the 10,935,000 stock options issued at a price of $0.15 per share will be on February 16, 2016.
More detailed information is available on the website at www.macdonaldmines.com.
For more information, please contact:
(416) 364-2753 (FAX)
Brent Nykoliation, Vice President, Business Development
Quentin Yarie, P.Geo, Vice President, Exploration
Kirk McKinnon, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines Exploration Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald Mines plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald Mines with the TSX Venture Exchange and securities regulators. MacDonald Mines does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.