MacDonald Mines Closes Private Placement with HudBay Minerals and MineralFields for gross proceeds of $2,505,000
MacDonald Mines Exploration Ltd. (TSX.V: BMK) ("MacDonald Mines” or the "Company") is pleased to announce that it has closed a brokered and non-brokered, private placement financing with two investors for gross proceeds totaling $2,505,000.
HudBay Minerals Inc. (TSX: HBM) (NYSE: HBM) (“HudBay”) invested $1,755,000 on a non-flow through basis at $0.13 per share for a total of 13,500,000 common shares. As a result of the investment HudBay currently owns 15.4% of the issued and outstanding shares of MacDonald Mines’ on a non-diluted basis and 19.1% on a partially diluted basis.
- MineralFields invested $750,000 on a flow through basis at $0.15 per unit for total of 5,000,000 units. Each unit entitled MineralFields to one flow-through common share and one half of one non-flow through common share purchase warrant (“Warrant”). Each Warrant entitles the holder to purchase one common share of the Company at a price of $0.25 per share. The Warrants expire 24 months from the date of issue. In addition, the Company paid broker fees in the form of cash compensation of $52,500 and issued 350,000 non-transferable compensation options, with each such option entitling the holder to acquire one unit at a price of $0.15 per unit for a period of 24 months following closing.
The Company intends to use the proceeds of this private placement to continue its exploration efforts in the “Ring of Fire” area in the James Bay Lowlands region of Northern Ontario.
The financing is subject to final approval by the TSX Venture Exchange. All securities issued in connection with the financing are subject to a restricted period of four months and one day from the date of issuance.
About MineralFields Group
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. The sector focus is on gold and precious metals, base metals, rare earths and lithium, potash, uranium, oil, coal and gas. Information about MineralFields Group is available at www.mineralfields.com.
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. More detailed information about the Company is available on the website at www.macdonaldmines.com.
For more information, please contact:
Toll Free: 1 - (800) 818-5442
Tel: (416) 364-4986
Fax: (416) 364-2753
Brent Nykoliation, Vice President, Business Development
Quentin Yarie, P.Geo, Senior 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.