Toronto, Ontario
-May 01,2008; 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.
The Agreement
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:
- $10,000
within 5 days of signing the LOA; and
- $10,000
within 5 days of signing the formal Option and Joint Venture Agreement;
and
- $260,000
within 5 days of the Effective Date ("Effective Date" means
the date that the Toronto Venture Stock Exchange grants approval of the
formal Option/Joint Venture Agreement.
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:
- One-Million
(1,000,000) common shares and five-hundred thousand (500,000) warrants
within 30 days of the Effective Date. Warrants are exercisable at $0.75
per share for a period of 24 months from date of issuance;
- Five-hundred
thousand (500,000) common shares and two-hundred & fifty thousand
(250,000) warrants on or before the first year anniversary of the
Effective Date. Warrants are exercisable at $1.00 per share for a period
of 24 months from date of issuance;
- Five-hundred
thousand (500,000) common shares and two-hundred & fifty thousand
(250,000) warrants on or before the second year anniversary of the
Effective Date. Warrants are exercisable at $1.00 per share for a period
of 24 months from date of issuance.
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)
- Incur
a work commitment of seven-hundred & fifty thousand dollars
($750,000) in exploration expenditures on or before the first
anniversary of the Effective Date.
- Incur
a work commitment of an additional seven-hundred & fifty thousand
dollars ($750,000) on or before the second anniversary of the Effective
Date.
- Incur
a work commitment of an additional five-hundred tho usand dollars
($500,000) or before the third anniversary of the Effective Date.
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
or
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.