TORONTO, Oct. 9 /CNW/ - MacDonald Mines Exploration Ltd. (TSX
VENTURE:BMK) ("MacDonald" or the "Company") is pleased to announce it has
signed a Letter of Agreement with Shoreham Resources Ltd. (TSX-V:
SMH)("Shoreham") to option 100% of Shoreham's interest in the northwest region
of Sachigo Greenstone Belt.
The now named "Saracourt Property" consists of approximately 36 claim
blocks, which includes the northwest and southeast blocks, or 440 units,
totaling 9000 hectares. It is 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 an agreement between MacDonald and Shoreham. The current market conditions
have allowed us to capitalize on this opportunity, and acquire a 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. As well, given MacDonald's ongoing effort to create
strong working relationships with the native communities, the Company will to
continue to follow this course of action with the communities in the area."
Terms of the Agreement
Subject to Exchange approval, the terms of the Agreement call for
MacDonald to make cash payments to Shoreham of $75,000 within 60 days of
signing the Letter Agreement (the Effective Date) and pay a further $75,000 on
or before the third anniversary of the Effective Date. In addition, MacDonald
will issue to Shoreham 150,000 common shares and 300,000 warrants of MacDonald
within 30 days of the Effective Date and a further 150,000 shares and 300,000
warrants on or before the first anniversary of the Effective Date. The
warrants are exercisable at $0.40 per share. Shoreham will retain a 2-1/2% Net
Smelter Royalty (NSR) interest in the Property subject to a buy down provision
whereby MacDonald can reduce the royalty to 1-1/2% by paying Shoreham
$1 million. The NSR applies to an Area of Influence of approximately 391
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:
firstname.lastname@example.org, 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