MacDonald Mines Exploration Ltd.

MacDonald Mines Exploration Ltd.

September 14, 2007 14:02 ET

MacDonald Mines Completes $500,000 Brokered Flow-Through Financing

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2007) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald") has completed a financing which raised $500,000 through the sale of 5,000,000 flow-through units ("FT Units") at $0.10 each in a private placement brokered by IBK Capital Corp. Each FT Unit consists of one common share of MacDonald to be issued as a "flow-through share" and one non-flow-through common share purchase warrant. Each common share purchase warrant will entitle the holder thereof to purchase one common share of the capital stock of MacDonald that is not a "flow-through share" at an exercise price of $0.12 per common share at any time for 2 years from the date of closing.

In connection with this financing arrangement MacDonald paid compensation to IBK Capital Corp. as follows: a 9 % commission totalling $45,000 payable in the form of 450,000 common shares at $0.10 per common share and 500,000 broker warrants representing 10% of the number of Units sold, exercisable at a price per common share of $0.10 for 2 years from the closing date.

All securities issued in connection with this financing will be subject to a four month hold period from the closing date and is subject to final regulatory approval.

The proceeds from the private placement will be used by MacDonald for exploration work on its properties in the James Bay area of Northern Ontario.


An aggregate of 3,720,000 options were exercised on September 12, 2007 in accordance with the Company's stock option plan. This will provide the Company with $384,000 of required non-flow-through funds. The Board subsequently granted the issuance of 4,280,000 stock options to Directors, Officers and Consultants of the Corporation under the terms of an Incentive Stock Option Plan filed with the TSX Venture Exchange and approved by shareholders at the last AGM held on June 12, 2007. The options are exercisable at $0.215 "per share" for a period of 4 years and are subject to a four month hold period from date of issuance.

WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • MacDonald Mines Exploration Ltd.
    J. A. Kirk McKinnon
    President and Chief Executive Officer
    (416) 364-4986
    MacDonald Mines Exploration Ltd.
    Richard Schler
    Vice President & CFO
    (416) 364-4986
    (416) 364-2753 (FAX)