Wallbridge Mining Company Limited (TSX: WM), (“Wallbridge” or the “Company”) has announced today that it has entered into an agreement with BMO Capital Markets, on behalf of itself and a syndicate of underwriters (collectively, the “Underwriters”) led by BMO Capital Markets, under which the Underwriters have agreed to buy, on a bought deal basis, 27,300,000 charity flow-through common shares of the Company (the “Charity Flow-Through Common Shares”) at a price of C$0.55 per Charity Flow-Through Common Share for aggregate gross proceeds of approximately C$15 million (the “Offering”). The Company has granted the underwriters an option, exercisable at the offering price up to 30 days following the closing of the Offering, to purchase up to an additional 15% of the Charity Flow-Through Common Shares issued in connection with the Offering. Each Charity Flow-Through Common Share will qualify as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act (Canada) and, in respect of eligible Québec resident subscribers, section 359.1 of the Taxation Act (Québec).
Wallbridge has also announced today that it will be completing a non-brokered private placement of National flow-through common shares (the “National FT Shares”) and Quebec flow-through common shares (the “Quebec FT Shares”) for aggregate gross proceeds of at least C$12 million (the “Private Placement”). The National FT Shares will be issued at a price of C$0.37 and the Quebec FT Shares at a price of C$0.41. All securities issued pursuant to the Private Placement will have a four month and one day statutory hold period. Certain insiders of the Company may participate in the Private Placement.
Kirkland Lake Gold Ltd. (“Kirkland Lake”) has certain participation rights and will participate in the Offering, in order to maintain its existing 9.9% ownership position in the Company. William Day Construction Limited is expected to participate in the Offering.
The gross proceeds from the offerings will be used to support the Company’s 2022 exploration program at the Company’s Detour-Fenelon Gold Property.
The Charity Flow-Through Common Shares will be offered by way of a short form prospectus in all of the provinces of Canada. The Offering is expected to close on or about February 24, 2022 and is subject to the Company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Wallbridge Mining
Wallbridge is currently advancing the exploration and development of its 100%‒owned Fenelon Gold property located along the Detour‒Fenelon Gold Trend, an emerging gold belt in northwestern Québec. Within three years of the discovery of the Area 51 and Tabasco/Cayenne Zones, through drill programs totaling over 300,000 metres, Wallbridge reached an important milestone by announcing a maiden Mineral Resource Estimate (MRE) for Fenelon and an updated MRE for the Martiniere Gold Property totalling 2.67 Moz Au in the indicated category and 1.72 Moz Au in the inferred category (for details of the MREs see Wallbridge press release dated November 9, 2021 and Technical Report filed December 23, 2021 on SEDAR).
Both properties are located on the Company’s 910 km2 land package along the Detour-Fenelon Gold Trend in Northern Abitibi, Québec, with significant potential for further discoveries over a 97‒kilometre strike length of this underexplored belt.
Wallbridge is also the operator of, and a 17.8% shareholder in, Lonmin Canada Inc., a privately‒held company with a 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., MBA
President & CEO
Tel: (705) 682‒9297 ext. 251
Email: mkord@wallbridgemining.com
Victoria Vargas, B.Sc. (Hon.) Economics, MBA
Investor Relations Advisor
Email: vvargas@wallbridgemining.com
