TORONTO, ONTARIO--(Marketwire - June 29, 2012) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald" or the "Company") reports that it has signed a binding letter of intent with Noble Mineral Exploration Inc. (TSX VENTURE:NOB) ("Noble") to acquire all of the property interests of Noble in the James Bay Lowlands - Ring of Fire area. The transaction includes the 36.75% interest in the MacDonald-Noble Joint Venture property consisting of 6 claim blocks located in the eastern portion of the Butler property, which is otherwise 100% owned by the Company.
Kirk McKinnon, President & CEO commented: "The acquisition of these properties further reflects our commitment to the Ring of Fire area and in particular the potential of the Butler Property with promising Copper/Zinc, Nickel and Chrome targets. MacDonald's continues to enhance its land position and the recent announcement made by Cliff's shows the development commitment being put towards turning the Ring of Fire into Canada's next mining camp".
MacDonald's is currently drilling on the Butler property and will provide an update on the program as results come in.
The purchase price for the properties is as follows:
||Cash: $150,000, of which $75,000 will be paid on signing of the definitive purchase and sale agreement (refundable in the event the property is not transferred by the deadline noted in the agreement) and $75,000 paid within 120 days of the transfer of the property,
||Common Shares: the issuance of 3,000,000 common shares of MacDonald, and
||Warrants: the issuance of a total of 3,000,000 warrants to acquire common shares of MacDonald, with 1,000,000 Warrants exercisable at a price of $0.30 per share; 1,000,000 Warrants exercisable at a price of $0.50 per share; and the remaining 1,000,000 Warrants exercisable at a price of $0.70 per share, all Warrants to expire after two (2) years from the date of issuance.
All securities issued in connection with this transaction will be subject to the applicable regulatory hold periods.
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 information about the Company is available at www.macdonaldmines.com.
The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines Exploration Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald with the TSX Venture Exchange and securities regulators. MacDonald does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. We seek safe harbour.
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.