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MacDonald Mines Announces Increase of Flow-Through Private Placement to $3,500,000

Jul 10, 2020

MacDonald Mines Exploration Ltd. has increased the size of its non-brokered private placement offering announced on July 9, 2020 to $3,500,000 consisting of: (i) “charity flow-through” Units at a price of $0.135 each (the “Charity FT Unit Offering”) and (ii) “flow-through” Units at a price of $0.10 each (the “FT Unit Offering” and, together with the Charity FT Unit Offering, the “Offering”). Eventus Capital Corp. has been appointed as a finder in connection with the Offering.

Quentin Yarie, President & CEO, stated, “We are pleased with the strong institutional support of MacDonald Mines and we look forward to continuing to advance our flagship SPJ Project near Sudbury, ON. I thank all investors for their support and, with a drill already on site, we are preparing to launch an aggressive exploration program in the coming weeks. This will include a new IP survey to extend our data and modelling to the south and east of the Scadding Deposit and an initial 10,000 metres of drilling that will begin at the end of July.” 

Each Unit will be comprised of one Common Share and one-half of one Common Share purchase warrant (each whole warrant, “Warrant”). Each Warrant shall be exercisable to acquire one Common Share (“Warrant Share”) at a price of $0.20 per Warrant Share for a period of 24 months from the closing of the Offering. If the closing price of the Common Shares is at a price equal to or greater than $0.35 for a period of 10 consecutive trading days, MacDonald will have the right to accelerate the expiry date of the warrants by giving notice, via a new release, to the holders of the Warrants that the Warrants will expire on the date that is 30 days after the issuance of said news release.

Common Shares issued under the FT Offering and Charity FT Unit Offering qualify as ‘flow through shares’ (“Flow Through Shares”). The gross proceeds from the FT Offering and Charity FT Unit Offering will be used to incur ‘Canadian exploration expenses’ that will qualify as ‘flow through mining expenditures’ as those terms are defined in the Income Tax Act which will be renounced to the initial purchasers of the Flow Through Shares. The net proceeds of the Offering will be used for exploration, including continued drilling of the Scadding Deposit and other prospective targets on the Company’s large SPJ property, and general working capital purposes.

Finders will receive a 7% cash payment and that number of compensation warrants (having the terms described above) equal to 7% of the Units sold. Closing of the Offering is subject to approval of the TSX Venture Exchange. Securities issued in the Offering are subject to a statutory hold period of four months.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirement is available.

SPJ Property highlights 

  • 100% ownership
  • 18,340 hectares in excellent mining jurisdiction and close to infrastructure
  • Hosts the high-grade past producing Scadding Gold Mine 
  • Evidence of polymetallic mineralization at the Scadding Deposit indicative of IOCG potential
  • Significant gold, cobalt-copper, silver, nickel and rare earth showings outside of the Scadding Deposit footprint

Historically, the Scadding Mine produced 914 kilograms of gold from 127,000 tonnes of mineralized material grading 7.2 g/t (OFR 5771). MacDonald’s reinterpretation of the geological model at the Scadding Deposit and the Company’s results to date indicate that the SPJ Project could host a large gold-rich Iron-Oxide-Copper-Gold deposit.

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