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BMK - MacDonald Mines Exploration News Story

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Last Trade - 26/01/22

Basic Materials
Micro Cap
Market Cap £6.24m
Enterprise Value £6.00m
Revenue £n/a
Position in Universe 1887th / 2711

MacDonald Mines Announces First Closing of Private Placement

Wed 10th November, 2021 12:00pm
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TORONTO, Nov. 10, 2021 (GLOBE NEWSWIRE) -- MacDonald Mines Exploration Ltd.
(TSX-V: BMK) (“MacDonald Mines” or the “Company”) announces that it
has closed the first tranche of its previously announced non-brokered private
placement offering (the “Offering”) for proceeds of $1,418,650.87
consisting of: (i) 18,947,797 “flow-through” units (the “FT Units”)
at a price of $0.045 each, and (ii) 14,150,000 units (the “Units”) at a
price of $0.04 each.

Each FT Unit sold in the Offering is comprised of one common share that
qualifies as a “flow-through share” within the meaning of the Income Tax
Act (Canada) and one-half of one share purchase warrant (each whole warrant, a
“Warrant”). Each whole Warrant is exercisable to acquire one Common Share
(“Warrant Share”) at a price of $0.07 per Warrant Share for a period of 24
months from the closing. Each Unit is comprised of one non-flow through share
and one half of one Warrant.

The proceeds from the sale of Units will be used to incur the expenses set out
in the press release of the Company dated September 29, 2021 (the “Prior
Press Release”). Although the Company intends to use the proceeds as set out
therein, the actual allocation and uses may vary in accordance with prudent
business practice. In closing the first tranche of the Offering, the Company
waived the receipt of Minimum Proceeds (as defined in the Prior Press Release)
from the sale of Units. Proceeds from the sale of the FT Units will be used to
incur “Canadian exploration expenses” that will qualify as “flow through
mining expenditures” within the meaning of those terms in the Income Tax
Act (Canada) which will be renounced to the purchasers of the units. The
Company intends to close further tranches of the Offering, although there can
be no assurances that any further closings will occur. All securities issued
in the Offering are subject to a statutory four month hold period as well as a
TSX Venture Exchange (“TSXV”) hold period.

The Company is relying on the temporary relief measures announced by the TSXV
on April 8, 2020 and June 17, 2021 (the “Temporary Relief”) in offering
the Units and the FT Units at a price that is less than $0.05. Pursuant to the
Temporary Relief, the Company will not issue more than 100% of its issued and
outstanding common shares pursuant to the Offering. All securities issued
under the Temporary Relief will be subject to a TSXV hold period in addition
to the restricted period under applicable securities laws and will be legended
accordingly. The proceeds of the Offering will not primarily be used to pay
management fees or for investor relations activities. The Company has applied
to the TSXV for a 30-day extension to close the Offering. The final closing of
the Offering is expected on or before November 30, 2021. The Offering and the
closing extension are subject to TSXV approval.

In connection with the first tranche closing of the Offering the Company paid
finders’ fees in respect of the sale of securities to purchasers introduced
to the Company by such finders of $92,892.07 and has issued 2,151,153
non-transferable compensation warrants (the “Compensation Options”) to
such finders. Each Compensation Option entitles the holder to acquire units of
the Company comprised of one common share and one half of one Warrant at a
price of $0.05 per Compensation Option.

About MacDonald Mines Exploration Ltd.

MacDonald Mines Exploration Ltd. is a mineral exploration company
headquartered in Toronto, Ontario focused on gold exploration in Canada. The
Company is focused on developing its large SPJ Project in Northern Ontario.

The Company's common shares trade on the TSX Venture Exchange under the symbol

To learn more about MacDonald Mines, please visit 

For more information, please contact:

Stuart Adair, Interim President & CEO, (416) 364-4986,

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

This News Release contains forward-looking statements. In some cases, you can
identify forward-looking statements by terminology such as “may”,
“should”, “expects”, “plans”, “anticipates”, “believes”,
“estimates”, “predicts”, “potential” or “continue” or the
negative of these terms or other comparable terminology. These statements are
only predictions and involve known and unknown risks, uncertainties and other
factors that may cause our or our industry’s actual results, levels of
activity, performance or achievements to be materially different from any
future results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements.

Although the Company believes that the assumptions and factors used in
preparing the forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information, which only applies as
of the date of this news release. The Company disclaims any intention or
obligation to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, other than as required
by law.


GlobeNewswire, Inc. 2021
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