MacDonald Mines Announces Private Placement and Strategic Investor on its Wawa-Holdsworth Project, Wawa, Ontario
TORONTO, ONTARIO--(Marketwired - Aug 2, 2017) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", the "Company") is pleased to announce a non-brokered private placement for gross proceeds of CAD$500,000(the "Offering"). The Company intends to close the Offering on Wednesday August 2, 2017 subject to the receipt of all regulatory approvals including the approval of the TSX Venture Exchange.
The Offering will consist of the issuance of 5,000,000 Class A common Shares (the "Shares") at a subscription price of CAD $0.10 per share.
The Company is pleased to announce that CMP 2016 Resource Limited Partnership ("CMP"), an investment fund managed by Goodman & Company, Investment Counsel Inc., an affiliate of Dundee Corporation, will subscribe for all 5,000,000 Shares to be issued in the Offering. Following the closing of the Offering, CMP will hold approximately 7.26% of the issued and outstanding Shares of the Company on an undiluted basis
Wawa-Holdsworth Project Highlights
- Neighbouring Richmont's Island Gold Mine, Argonaut's Magino Gold Project and Goldcorp's Borden project
- Numerous gold showings with diversified mineralization styles occurring in a 500 metres-wide deformation corridor
- Year-long road access and easy access to rail, road, electrical power, labour force and suppliers
Overview of the Wawa-Holdsworth Project
Historic work by previous operators defined three gold targets on the Wawa-Holdsworth Project:
- Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System and Reed-Booth Showing);
- BIF-hosted gold deposits (gold-bearing pyrite zones in an Algoma-type iron formation);
- Gold-bearing Oxide Sands developed from the weathering of the auriferous Pyrite Zones.
MacDonald Mines is focusing its near-term exploration program on the Oxide Sands. These appear to extend for more than 2 kilometres on the property as corroborated by MacDonald's recent airborne magnetics results (see June 1, 2017 News Release) and reach a depth of at least 8 metres.
Recent preliminary sampling of the Oxide Sands by MacDonald Mines returned an average grade of 5.45 g/t gold (see May 16, 2017 News Release).
Preliminary metallurgical testing conducted by previous operators on composite samples recovered, without crushing, between 69% and 98.7 % gold. Earlier this year, MacDonald Mines initiated and reported an in depth metallurgical test of the Oxide Sands to achieve the highest possible gold and silver recovery.
The soft and relatively unconsolidated Oxide Sands material can be extracted like an aggregate. The Company is working to better define the Oxide Sands as continues to prepare for potential exploitation of the material.
Qualified Person
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.
About MacDonald Mines Exploration Ltd.
MacDonald Mines Exploration Ltd. is a mineral exploration company headquartered in Toronto, Ontario focused on gold exploration in Canada. The Company has built a portfolio of safe-jurisdiction, infrastructure-rich projects that demonstrate the greatest market potential for return. The Company is aggressively advancing its highly prospective Wawa-Holdsworth Project.
The Company's common shares trade on the TSX Venture Exchange under the symbol "BMK".
To learn more about MacDonald Mines, please visit www.macdonaldmines.com
Cautionary Statement:
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 the Company. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from the Company's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by the Company 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.
Contact
Quentin Yarie
President & CEO
(416) 364-4986
qyarie@macdonaldmines.com
Mia Boiridy
Investor Relations
(416) 364-4986
mboiridy@macdonaldmines.com