MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) has announced that it has closed the non-brokered, private placement financing of $3,430,800 with HudBay Minerals Inc. (TSX:HBM) announced on October 6, 2010.
The transaction was comprised of 19,060,000 units at $0.18 per unit. Each unit consists of one Class A share of MacDonald Mines (a "Share") and one half of one Share purchase warrant (a "Warrant"). Each full Warrant is exercisable for one Share of MacDonald Mines at $0.25 per Share for a period of 36 months expiring on October 8, 2013. A total of 9,530,000 Warrants were issued.
The financing is subject to receipt of final approval of the TSX Venture Exchange. All securities issued in connection with the financing are subject to a restricted period of four months and one day from the date of issuance.
HudBay now owns 9.9% of MacDonald Mines' issued and outstanding Shares (14.15% on a partially diluted basis).
Drill Program Commences – Nickel, Copper and Zinc Targets To Be Tested
MacDonald Mines has commenced drilling on its Butler (formerly McNugget) Property. MacDonald Mines' Vice President of Exploration Quentin Yarie, P.Geo is overseeing the exploration program and has joined the Company's on-site geologist, James Masters, at the camp on Butler. Presently in-camp as well are geologists Robin Chisholm, P.Geol., President, and Craig Scherba, P.Geol. of Taiga Consultants, as well as consulting geologist Dr. Larry Hulbert, P.Geo.
Employing two Cartwright diamond drills, the program will run for the next 4 weeks and will consist of approximately 3,700 metres of drilling. Focus will be on testing existing intersections at greater depths that were verified from the previous drill program, and intersecting a variety of new targets - up to 400 metres in depth. These new targets were identified by a detailed airborne Geophysics using Aeroquest International's AertoTEM IV system and was conducted after the previous drill program.
Six targets have been selected to test for VMS (copper/zinc) and several potential nickel targets in the area are currently being ranked by Robin Chisholm, Craig Scherba, Dr. Larry Hulbert and Quentin Yarie.
Source: MacDonald Mines Exploration Ltd.