Non-brokered deal sealed with HudBay; funds to be used for exploration
By Devika Patel
Knoxville, Tenn., Oct. 8 - MacDonald Mines Exploration Ltd. said it sold 19.06 million units in a non-brokered private placement.
The company raised C$3.43 million by selling units of one class A share and one half-share warrant at C$0.18 apiece to HudBay Minerals Inc.
Each whole warrant will be exercisable at C$0.25 until Oct. 8, 2013. The strike price reflects a 38.89% premium to the Oct. 5 closing share price of C$0.18.
Proceeds will be used for exploration on the Butler property.
"The HudBay Minerals investment in MacDonald Mines is a very important step in highlighting the growing potential of the mineral wealth in the James Bay Lowlands 'Ring of Fire' region," president and chief executive officer Kirk McKinnon said in a release at pricing.
"We are very pleased that HudBay has made this investment in the company, which we believe demonstrates HudBay's belief in the quality and potential of our mineral properties and the Ring of Fire area generally. HudBay is now the second major mining company to make an investment in the area.
"In conjunction with the very significant investment already made by Cliffs Natural Resources (approximately $400 million to date with projections to exceed $1 billion) and this initial step taken by HudBay, it should help to add to the Government of Ontario's recognition of the potential mineral wealth of this region and its importance to the province's economy," McKinnon stated.
"As a junior mining explorer, MacDonald Mines understands the need for provincial government involvement and looks forward to further exploration success and the resulting benefits to all interested stakeholders, including the First Nation Communities, the mining companies and the provincial government."
Toronto-based MacDonald is engaged in the identification, acquisition and exploration of mineral properties.
| Issuer: | MacDonald Mines Exploration Ltd.
|
| Issue: | Units of one class A share and one half-share warrant
|
| Amount: | C$3,430,800
|
| Units: | 19.06 million
|
| Price: | C$0.18
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Oct. 8, 2013
|
| Warrant strike price: | C$0.25
|
| Agent: | Non-brokered
|
| Investor: | HudBay Minerals Inc.
|
| Pricing date: | Oct. 6
|
| Settlement date: | Oct. 8
|
| Stock symbol: | TSX Venture: BMK
|
| Stock price: | C$0.20 at close Oct. 6
|
| Market capitalization: | C$30.64 million
|
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