BMK; from Stockwatch services; already mentioNP says MacDonald share issue good for its buyers
MacDonald Mines Exploration Ltd (2) (C:BMK)
Shares Issued 89,814,315
Last Close 11/2/2007 $0.86
Monday November 05 2007 - In the News
The National Post reports in its Saturday edition that MacDonald Mines Exploration on Oct. 26 announced a $10-million financing at 40 cent a unit. The Post's Peter Hodson writes that MacDonald stock at the time was 84 cents, so the units were priced at least 50-per-cent lower than the then prevailing market price, not including the value of the warrants attached to the unit offering. It is likely the financing was being arranged just as the stock was beginning to run because of the company's exploratory program in close proximity to Noront Resources' recent base metals discovery in Ontario. On the TSX Venture Exchange, companies and dealers can ask for and receive what is known as "price protection," when proposing a financing on a company whose share price can rapidly change. This price protection can be in place for up to 45 days. MacDonald shareholders might be disappointed they cannot all buy units at 40 cents, they should be happy, however, with the group of new shareholders involved, Franco-Nevada chairman Pierre Lassonde and US Gold chief Rob McEwen. This is an experienced group of investors. Junior miners like MacDonald often need to raise money when they can and when it is being offered.
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