MacDonald Mines Exploration Ltd.
TSX VENTURE : BMK

MacDonald Mines Exploration Ltd.

December 05, 2006 11:07 ET

MacDonald Mines Exploration Ltd. Announces Private Placement of Flow-Through Units With the Mineralfields Group

TORONTO, ONTARIO--(CCNMatthews - Dec. 5, 2006) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK)("MacDonald") has raised $700,000 through the sale of 7,000,000 flow-through units ("FT Units") at $0.10 each to the MineralFields Group in a non-brokered private placement. Each FT Unit shall consist 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 $0.15 per common share at any time until November 27, 2008.

All securities issued in connection with this financing will be subject to a four month hold period which expires on March 27, 2007. In conjunction with the financing, a cash finders fee of 6.5% of the proceeds for a total of $45,500 was paid, and broker's compensation options were issued to acquire a total of 7.0% of the Units sold, being 490,000 broker options exercisable at $0.10 per Unit until November 27, 2008.

The proceeds from the private placement will be used by MacDonald for exploration work on its properties in Northern Ontario. Kirk McKinnon, President and CEO of MacDonald stated, "We are very pleased to be entering into this relationship with MineralFields Group. This is an important milestone in the growth of MacDonald and we look forward to working with MineralFields Group as we develop our holdings in the "McFauld's Lake Region".

Financing

In addition, the Corporation completed a non-brokered private placement for gross proceeds of $15,000, the terms of which are consistent with those of the offering of the private placement described above. All securities issued in connection with this financing will be subject to a four month hold period. The private placement is subject to final approval of the TSX Venture Exchange.

Fall 2006 Exploration Results

The company will be announcing drill results within the next ten days.

About MineralFields

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about the MineralFields Group is available at www.mineralfields.com.

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
    or
    MacDonald Mines Exploration Ltd.
    Richard Schler
    Vice President & CFO
    (416) 364-4986
    (416) 364-2753 (FAX)
    Email: info@macdonaldmines.com
    Website: www.macdonaldmines.com