MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", "MacDonald" or the "Company") is pleased to announce that it has signed a Binding Letter of Intent ("LOI") with Noble Mineral Exploration Inc. ("Noble") to acquire all of Noble's interest in the Holdsworth property (the "Property"), located 25 kilometres northeast of Wawa, Ontario. The Holdsworth property is part of the land package that comprises MacDonald's Wawa-Holdsworth Project.
MacDonald previously entered into an Option and Joint Venture ("JV") agreement with Noble on December 7, 2016 to advance exploration on the Holdsworth property. The LOI supersedes the original agreement.
Quentin Yarie, MacDonald's President and CEO commented: "In the few months our team has worked on the Holdsworth property, we've determined that there is a good potential for gold extraction there. We've already initiated a bulk sampling program of the oxides sands-the main gold target on the property. Securing 100% interest ensures that MacDonald can continue to aggressively advance the Wawa-Holdsworth Project and significantly increase shareholder value."
To acquire 100% interest in the Holdsworth property, MacDonald Mines agrees to:
- Issue 5,500,000 units of the Company's common shares. Each Unit will consist of one Class A common share and one non-transferable Class A common share purchase warrant exercisable at $0.30 per share for a period of three years from the date of issuance.
- Grant Noble a 1.5% net smelter return royalty (the "NSR") on the Holdsworth property. MacDonald will have the right to re-purchase one half of the NSR for $500,000 at any time.
- Pay the equivalent of 5,000 ounces of gold equivalent to Noble once MacDonald has extracted, refined and sold a minimum of 50,000 ounces of gold from the oxide sands portion of the Property.
Wawa-Holdsworth Project Highlights
- Approximately 285 hectares, 20 kilometres northeast of the town of Wawa
- Neighbouring Argonaut's >6Moz gold Magino Deposit & Richmont's >1Moz gold Island Gold Mine
- Numerous gold showings with diversified mineralization styles occurring in a 500 metres-wide deformation corridor
- Year-long road access and easy access to rail, road, electrical power, labour force and suppliers
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.