MacDonald Mines Exploration Ltd.

MacDonald Mines Exploration Ltd.

March 16, 2007 10:01 ET

MacDonald Mines Exploration Ltd. Announces Private Placement of Flow-Through Units with the MineralFields Group

TORONTO, ONTARIO--(CCNMatthews - March 16, 2007) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald") intends to raise up to $800,000 through the sale of flow-through units ("FT Units") at $0.10 per Unit 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 at an exercise price of $0.15 per common share at any time for a period of 24 months from date of issuance. The private placement is subject to regulatory approval.

All securities issued in connection with this financing will be subject to a four month hold period. In conjunction with the financing, a cash finders fee of 6.5% of the proceeds will be paid, and broker's compensation options issued to acquire a total of 7.0% of the Units sold, such options to be exercisable at $0.10 per unit at any time for a period of 24 months from date of issuance.

The proceeds from the private placement will be used by MacDonald to continue its exploration programs in James Bay. Kirk McKinnon, President and CEO of MacDonald stated, "We are very pleased to be entering into our second financing with the MineralFields Group. We appreciate their continued support in funding our exploration activities."

About MineralFields and Pathway

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. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds.

Information about the MineralFields Group is available at

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) 364-7024
    MacDonald Mines Exploration Ltd.
    Richard Schler
    Vice President & CFO
    (416) 364-7024
    (416) 364-2753 (FAX)