Wallbridge Mining Company Limited (TSX:WM)
(
“Wallbridge” or the
“
Company”) today announced that
it has entered into an option agreement (the “
Option
Agreement”) with respect to its Detour East gold property
(“
Detour East” or the “
Property”)
with Kirkland Lake Gold Inc. (“
Kirkland”), a
wholly owned subsidiary of Kirkland Lake Gold Ltd. (TSX:KL). Under
terms of the Option Agreement, Kirkland can earn a 75% interest in
Detour East by making expenditures totalling $35 million on the
Property, as described below and in the Company’s news release of
September 14, 2020.
Under the terms of the Option Agreement,
Wallbridge will grant Kirkland the option to acquire up to an
undivided 50% interest in the Property by funding phase 1
expenditures of $7.5 million over five (5) years (the
“Phase 1 Expenditures”) with a minimum commitment
of $2.0 million in the first two years ($0.5 million by the first
anniversary and $1.5 million by the second anniversary of entering
into the Option Agreement (the “Option”). During
the Option period, Kirkland shall have the right to act as operator
of the Property.
Upon satisfaction of the Option, Wallbridge and
Kirkland shall form a joint venture (the “Joint
Venture”) on Detour East with Kirkland acting as the
operator of the Joint Venture (the “Operator”) to
carry on operations with respect to the Property.
Upon the formation of the Joint Venture,
Kirkland will hold the right to acquire an additional 25% interest
in the Property by incurring additional expenditures of $27.5
million within the first five (5) years of the formation of the
Joint Venture (“Second Stage Option Period”).
Upon Kirkland having incurred additional
expenditures of $27.5 million during the Second Stage Option
Period, Kirkland shall have earned an undivided 75% interest in the
Property. The deemed expenditures on the property shall be Kirkland
($35,000,000) and Wallbridge ($11,666,667). Following the
completion of the Second Stage Option Period, any additional funds
required will be contributed by the Joint Venture parties based on
their then proportional Joint Venture interests. Should either
Wallbridge or Kirkland (each a “Party” and
collectively the “Parties”) elect not to fund a
program, its Joint Venture interest will be diluted pro-rata. If a
Party commits to fund a program, and fails to contribute its share
of the funding, that Party’s Joint Venture interest will be diluted
at three times the pro-rata rate.
If either Party’s Joint Venture interest is
reduced to 5% or less, that Party’s Joint Venture interest shall be
automatically converted to a 1% net smelter return royalty (the
“NSR”) and the Joint Venture shall be
automatically terminated. The surviving Party shall have a right of
first offer with respect to the purchase or sale of the NSR by the
non-surviving party.
About Wallbridge Mining
Wallbridge is currently advancing the
exploration and development of its 100%-owned Fenelon Gold
property, which is located along the Detour-Fenelon Gold Trend, an
emerging gold belt in northwestern Québec. The Company is currently
completing its 100,000-metre exploration drill program in 2020 and
has plans for a fully-funded +150,000-metre drill program, as well
as the commencement of a 10,000-metre underground development
program in 2021.
The recent acquisition of Balmoral Resources has
secured for Wallbridge a buffer of several kilometres surrounding
its rapidly expanding Fenelon discovery providing room for growth,
as well as future mine development flexibility. This acquisition
has also significantly expanded Wallbridge's land holdings in
Québec along the Detour-Fenelon Gold Trend (from 10.5 km2 to over
900.0 km2), improving Wallbridge's potential for further
discoveries for over 90-kilometre strike in this under-explored
belt.
Wallbridge is also the operator of, and a shareholder in, Lonmin
Canada Inc., a privately-held company with a large portfolio of
nickel, copper, and platinum-group metals (PGM) projects in
Ontario's Sudbury Basin.
This news release has been authorized by the undersigned on
behalf of Wallbridge Mining Company Limited.
For further information please visit the
Company's website at www.wallbridgemining.com or contact:
Wallbridge Mining Company Limited
Marz Kord, P. Eng., M. Sc., MBAPresident & CEOTel: (705)
682-9297 ext. 251Email: mkord@wallbridgemining.com
Victoria Vargas, B.Sc. (Hon.) Economics, MBAInvestor Relations
AdvisorEmail: vvargas@wallbridgemining.com
This press release may contain certain
“forward-looking statements” within the meaning of applicable
Canadian securities legislation relating to, among other things,
the operations of Wallbridge Mining Company Limited (“Wallbridge”
or “Company”) and the environment within which it operates. All
statements, other than statements of historical fact, included
herein, including, without limitation, statements regarding future
plans and objectives of Wallbridge, future opportunities and
anticipated goals, the company’s portfolio, treasury, management
team, timetable to mineral resource estimation, permitting and the
prospective mineralization of the properties, are forward-looking
statements that involve various risks, assumptions, estimates and
uncertainties. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
“seeks”, “believes”, “anticipates”, “plans”, “continues”, “budget”,
“scheduled”, “estimates”, “expects”, “forecasts”, “intends”,
“projects”, “predicts”, “proposes”, "potential", “targets” and
variations of such words and phrases, or by statements that certain
actions, events or results “may”, “will”, “could”, “would”,
“should” or “might”, “be taken”, “occur” or “be achieved”. There
can be no assurance that such statements will prove to be accurate,
and actual results and future events could differ materially from
those anticipated in such statements.
By their nature, forward-looking statements
involve numerous assumptions, inherent risks and uncertainties,
both general and specific, that contribute to the possibility that
the predicted outcomes could differ materially from those contained
in such statements. These risks and uncertainties include, but are
not limited to, delays in obtaining or failures to obtain required
governmental, regulatory, environmental or other required approval,
the actual results of current exploration activities, fluctuations
in prices of commodities, fluctuations in currency markets, actual
results of additional exploration and development activities at the
Company’s projects, capital expenditures, the availability of any
additional capital required to advance projects, accidents, or
pandemic interruptions.
Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. These statements reflect the
current internal projections, expectations or beliefs of the
Company and are based on information currently available to the
Company.
The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws. The Company believes that the expectations
reflected in those forward-looking statements are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking statements included in this press
release should not be unduly relied upon by investors as actual
results may vary.
Risks and uncertainties about Wallbridge’s
business are more fully discussed in the disclosure material filed
with the securities regulatory authorities in Canada and available
on SEDAR under the Company’s profile at www.sedar.com. Readers are
urged to read these materials and should not place undue reliance
on the forward-looking statements contained in this press
release.
Covid-19 - Given the rapidly evolving nature of
the Coronavirus (COVID-19) pandemic, Wallbridge is actively
monitoring the situation in order to continue to maintain as best
as possible the activities while striving to protect the health of
its personnel. Wallbridge' activities will continue to align with
the guidance provided by local, provincial and federal authorities
in Canada. The company has established measures to continue normal
activities while protecting the health of its employees and
stakeholders. Depending on the evolution of the virus, measures may
affect the regular operations of Wallbridge and the participation
of staff members in events inside or outside Canada.
Kirkland Lake Gold (TSX:KL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kirkland Lake Gold (TSX:KL)
Historical Stock Chart
From Apr 2023 to Apr 2024