MacDonald Mines Exploration Ltd. - President and CEO, Quentin Yarie
President and CEO, Quentin Yarie
Source: Kitco Metals Insider
  • Following significant investor demand, MacDonald Mines (BMK) has increased its previously announced private placement to C$3.5 million
  • The company intends to issue an unspecified number of charity flow-through units at a price of 13.5 cents as well as regular flow-through units at a price of 10 cents
  • Each unit will be comprised of one common share in the company and half of one common share purchase warrant
  • The proceeds raised under the offering will be used to fund exploration and drilling activities at the company’s SPJ gold project in Ontario
  • MacDonald Mines (BMK) is currently up 10.53 per cent to $0.10 per share at 3:11pm EDT

Following significant investor demand, MacDonald Mines (BMK) has increased its previously announced private placement to C$3.5 million.

Under the terms of the placement, which was originally announced on July 9, the company intends to issue an unspecified number of charity flow-through units at a price of 13.5 cents each, as well as regular flow-through units at a price of 10 cents.

These units will be comprised of one common share in the company and half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share at a price of C$0.20, exercisable over a period of 24 months.

However, should MacDonald’s shares trade on the TSX Venture Exchange at a price equal to or more than $0.35 for a period of 10 consecutive trading days, the expiry date of the warrants may be brought forward.

In connection with the offering, Eventus Capital has been appointed as a finder and will receive a cash commission worth seven per cent of the total funds raised along with compensation warrants worth seven per cent of the total amount sold.

All of the securities issued will be subject to a statutory hold period of four months from the date of issuance.

The proceeds raised under the offering will be used to fund exploration and drilling activities at MacDonald’s 18,340-hectare SPJ gold project located 20 kilometres northeast of Sudbury, Ontario.

Quentin Yarie, President and CEO of MacDonald Mines, said he is pleased with the strong institutional support.

“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 induced polarisation 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,” he added.

MacDonald Mines (BMK) is currently up 10.53 per cent to $0.10 per share at 3:11pm EDT.

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