Falco, Impala join MacDonald at Casson (September 21, 2001)

MacDonald Mines Exploration (MMP-V) has reached an agreement in principal with Falconbridge (FL-T) and Impala Platinum to create a joint venture aimed at the exploration and development of the Casson Lake platinum-group-element property in north-central Ontario.

Under the proposed deal, Falconbridge and Impala must pay $400,000 in cash and spend $2.5 million on exploration by March 20, 2004 to earn a 50% joint venture interest in the project.

MacDonald Mines will receive $100,000 on signing and monthly installments of $10,000 for nine months thereafter. Also during that time, $350,000 worth of exploration must be completed. After that, Falconbridge and Impala will have the option of making six additional monthly payments of $10,000 and completing $400,000 of exploration by Dec. 20, 2002. The two can then make 15 additional monthly payments of $10,000 and complete another $1.75 million of exploration before March 20, 2004, at which point a 50-50 joint venture with MacDonald will be established.

Falconbridge and Impala also have the option of acquiring 5 million MacDonald shares at the prevailing market price on signing of the deal, and if all payments and expenditures are made by March 20, 2004, the two can acquire another 5 million shares at current market price.

Once a joint venture is formed, Falconbridge and Impala would have a further option to acquire an additional 20% interest in the Casson Lake property by funding a bankable feasibility study and guaranteeing production.

Previous grab sampling along a 5,000-metre mineralized strike length returned average grades of 1.73 grams combined platinum, palladium and gold per tonne.