MacDonald Mines Exploration Ltd.

MacDonald Mines Exploration Ltd.

August 31, 2007 12:08 ET

MacDonald Mines Exploration Ltd. Announces Private Placement of Flow-Through Units

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2007) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald") has raised $500,000 through the sale of 5,000,000 flow-through units ("FT Units") at $0.10 each in a private placement arranged 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.

All securities issued in connection with this financing will be subject to a four month hold period from the closing date, as well as regulatory approval. Under the terms of the compensation arrangement with IBK Capital Corp., MacDonald paid a 9 % commission totaling $45,000 payable in the form of 450,000 common shares at $0.10 per common share. In addition, 500,000 broker warrants were issued 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.

The closing date is scheduled on or about September 10, 2007.

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

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 and CFO
    (416) 364-4986
    (416) 364-2753 (FAX)