TORONTO, ONTARIO--(Marketwired - Dec. 8, 2016) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", "MacDonald" or the "Company") is pleased to announce that, subject to the approval of the TSX Venture Exchange, it has entered into an Option and Joint Venture ("JV") agreement ("the Option Agreement") with Noble Mineral Exploration Inc. ("Noble"), dated December 7, 2016 ("the "Effective Date"), to advance exploration on Noble's Wawa-Holdsworth Gold and Silver Project ("the Project"), located 25 kilometres northeast of Wawa, Ontario.
Subject to the terms and conditions of the Option Agreement, MacDonald Mines will have the right to earn up to an undivided 75% interest in the Project, comprising of a first option to earn a 51% base interest and a second option to earn an additional 24% interest.
Quentin Yarie, MacDonald's President and CEO commented: "MacDonald Mines is focused on evaluating strategic opportunities and we're delighted to enter into this agreement with Noble for the right to participate in what we believe to be a prospective and exciting gold and silver exploration project in Ontario. The addition of the Wawa-Holdsworth Gold and Silver Project further strengthens Macdonald's portfolio and has the potential to significantly increase shareholder value."
Vance White, Noble's President and CEO commented "We are very pleased to have the MacDonald exploration team involved in the exploration and development of the Wawa-Holdsworth project as they have a tremendous amount of expertise and experience in the Wawa gold camp. We feel the project has the potential to generate near term cash flow from its Oxide Sands zone."
Wawa-Holdsworth Gold and Silver Project Details
The Project is comprised of 19 contiguous patented mining claims covering approximately 304 hectares. Sixteen of these are located in the extreme southern part of Corbiere Township and the remaining three extend into the northern part of Esquega Township, in the Wawa Area of Northern Ontario (Figure 1).
The property has the potential to host Gold and Silver mineralization within three (3) distinct geological environments namely:
- Lode Gold in traditional quartz veins, known as the "The Soocana Vein",
- An oxidized cap at surface developed over a massive pyrite zone (Algoma Iron Formation) known as the "The Oxide Sands", and
- The precursor to the Oxide Sands - a massive pyrite zone (Algoma Iron Formation) at depths, known as "The Massive Sulphide".
Option Agreement Highlights
To earn an initial 51% undivided interest ("the Base Interest") in the Wawa-Holdsworth Gold and Silver Project, MacDonald Mines will:
- Issue 2,500,000 of its Class A Common Shares; and
- Issue 2,500,000 of its Warrants to Noble; and
- Incur a minimum of $1,200,000 in expenditures in the 18-month period following the Effective Date.
Should Noble elect not to participate at a 49%/51% interest level after completion of the initial earning (as per the items above), Macdonald will have the right to earn an additional 24% undivided interest in the Project, upon which Macdonald Mines and Noble would respectively hold a 75% and 25% interest in the Project. To earn the additional 24% undivided interest, MacDonald Mines will:
- Incur a further $1,000,000 of expenditures on or before the second anniversary of the date the First Option is exercised and the Base Interest is earned; and
- Make a payment of $100,000 to Noble.
Pursuant to the terms of the Option Agreement, MacDonald Mines will be the operator of the Project.
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.
About Noble Mineral Exploration Inc.
Noble Mineral Exploration Inc. is a junior Canadian natural resource company listed on the TSX Venture Exchange under the symbol "NOB". The Company holds a portfolio of diversified exploration projects at various stages of exploration, including Nickel/Gold in the Timmins Area of Northern Ontario, Gold in the Wawa area of Northern Ontario and Uranium in Northern Saskatchewan.
About MacDonald Mines Exploration Ltd.
MacDonald Mines Exploration Ltd is a mineral exploration company headquartered in Toronto, Ontario, Canada. Previously focused on Copper and Zinc (VMS), and Nickel exploration in the Ring of Fire area of the James Bay Lowlands of Northern Ontario, the Company is now focusing its efforts and finances on projects that demonstrate the greatest market potential for return.
MacDonald's common shares trade on the TSX Venture Exchange under the symbol "BMK".
To learn more about MacDonald Mines, please visit www.macdonaldmines.com
This News Release contains forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Figure 1 - Holdsworth Property is available at the following address: http://media3.marketwire.com/docs/1079284e_Map.pdf