MacMillan Gold Corp.

MacMillan Gold Corp.

November 08, 2007 13:00 ET

MacMillan Gold and West Timmins Mining Sign Property Option Letter Agreement

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2007) - George A. Brown, President and CEO of MacMillan Gold Corp. (TSX VENTURE:MMG), is pleased to announce that MacMillan has signed a Letter Agreement with West Timmins Mining Inc. (TSX:WTM) of Vancouver. The agreement outlines the terms of a Property Option Agreement whereby MacMillan grants West Timmins the right to earn an initial 51% interest in the La Violetta, Chino Gordo, and Palmira Properties in the States of Sinora and Sinaloa in Mexico.

MacMillan will be entitled to receive 300,000 shares of West Timmins subject to regulatory approval; 100,000 shares minimum committed to upon regulatory approval and 100,000 shares by each of September 30, 2008 and 2009. West Timmins will be the operator and is entitled to a 5% management fee. West Timmins is required to spend $500,000 by September 30, 2010 with a committed minimum of $100,000 by September 30, 2008.

West Timmins will also have the right to increase its 51% to 60% if it notifies MacMillan in writing of this intention within 60 days of completing the 51% earn in. This will require an additional 100,000 shares minimum committed by September 30, 2010 and 100,000 shares by September 30, 2011. The additional 200,000 shares will be subject to a maximum capped value of $1,400,000. Additional spending of $500,000 for a cumulative $1,000,000 will also be required by September 30, 2013.

Once West Timmins has completed the 60% earn in, it will have the right to increase this to a 70% interest if it undertakes, funds, and delivers a bankable feasibility report within three years of completing the 60% earn in.

The 210.6 hectare La Violetta Property was staked by MacMillan in 2002 in anticipation of a future auction of the Baboyahui Reserve by CORMI (Consejo de Recursos Minerales). The 741.0 hectare Chino Gordo Property and the 391.0 Palmira Property were staked by MacMillan in 2004 after a sampling program was conducted to determine MacMillan's bidding strategy for the then announced upcoming auction of the Baboyahui Reserve. The auction was held in October 2004 with Sydney Resource Corporation, a predecessor to West Timmins Mining Inc., being the successful winning bidder. MacMillan has maintained the mineral titles for these properties but did not aggressively advance them after failing to win the Baboyahui Reserve now held by West Timmins and referred to as the Montana de Oro Project.

George A. Brown, President and CEO states: "We are very pleased to see our properties being developed by West Timmins. We have been observing the progress and work in this exploration camp and feel that our properties will add value to West Timmins just as we expect West Timmins will add value to MacMillan as a West Timmins shareholder."

MacMillan welcomes West Timmins as a joint venture partner. Attracting qualified joint venture partners is part of MacMillan's strategy to add value to our exploration property portfolio while minimizing share dilution. MacMillan continues to pursue joint venture partners on some of MacMillan's other Mexico properties.

Investors are invited to visit the MacMillan Gold IR Hub at where they can post questions and receive answers or review existing questions and answers. Investors may also email questions or request to be added to the investor email list at

MacMillan Gold Corp. is a Canadian resource company listed on the TSX Venture Exchanges: Symbol "MMG".

The TSX Venture Exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of this news release.

Contact Information