TORONTO, Oct. 14 /CNW/ - MacDonald Mines Exploration Ltd. (TSX
VENTURE:BMK) ("MacDonald" or the "Company") is pleased to announce it has
signed a Letter of Agreement with Escape Gold Inc. (TSX-V: EGT)("Escape") to
acquire a 40% interest in Escape's Sachigo Lake Property in the northwest
region of Sachigo Greenstone Belt. Escape's 100% owned property consists of
5,312 hectares and immediately surrounds MacDonald's newly acquired
Land Position of Consequence
The "Saracourt Property" would increase from approximately 216 claim
units or 3,456 hectares, (which includes the northwest and southeast blocks)
to 548 claim units, totaling approximately 9,000 hectares. As a result of the
joint venture, MacDonald would have the option to own 40% of the entire
expanded land position located in the Sachigo Greenstone Belt in Northwestern
Ontario quadrant of the James Bay Lowlands. This area is currently undergoing
extensive exploration driven by the recent significant nickel-copper-precious
metal discovery by Noront Resources.
Potential of the Property
The Property hosts several highly prospective base metal target areas. In
1970, a major international mining company conducted reconnaissance airborne
geophysical surveys in the James Bay Lowlands. These surveys identified a
number of high priority targets, which the company followed up with diamond
drilling programs. The intention at that time was to explore for potential
extensions of the Thompson nickel belt into Ontario.
MacDonald is in the midst of outlining an exploration program, which will
focus on drilling approximately three high priority targets before "freeze
up", usually at the end of October. Target selection will be based on
historical information that was the catalyst for the Company to enter into
this arrangement to acquire the Property.
Kirk McKinnon, President and CEO of MacDonald Mines stated, "We are very
pleased to have concluded a Letter of Agreement outlining the principle terms
of a joint venture agreement between MacDonald and Escape Gold. The current
market conditions have allowed us to capitalize on the opportunity to further
expand our land position in the mineral-rich Sachigo Greenstone Belt, where
targets of interest were reportedly identified by a major international mining
company. This arrangement reflects MacDonald's ongoing commitment to
exploration success in this important region."
Terms of the Agreement
Subject to Exchange approval, the terms of the Agreement call for
MacDonald to make cash payments to Escape of $50,000 within 10 days of signing
the Letter Agreement (the Effective Date). In addition, MacDonald will issue
to Escape 300,000 common shares and 300,000 warrants of MacDonald within 30
days of the Effective Date and a further 300,000 shares and 300,000 warrants
on or before the first anniversary of the Effective Date. The warrants are
exercisable at $0.40 per share for a period of 24 months from date of
issuance. MacDonald will have an exploration work commitment of $360,000
during the twelve-month period commencing on the Effective Date.
MacDonald has an option to acquire a further 10% interest in the
additional Sachigo Lake Property by spending an additional $1,140,000 on
exploration during the three-year period from the first anniversary date to
the fourth anniversary date of the Effective Date.
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.
For further information:
For further information: MacDonald Mines Exploration Ltd., Email:
email@example.com, Website: www.macdonaldmines.com, 1-800-818-5442,
(416) 364-4986, (416) 364-2753 (FAX), Brent Nykoliation, Vice President,
Business Development; J. A. Kirk McKinnon, President & CEO; Richard Schler,
Chief Operating Officer & CFO