TORONTO, Dec. 17, 2013 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) ("Wallbridge") today announced that it has entered into an agreement
with Lonmin Plc and Lonmin Canada Limited (together "Lonmin") to amend
the existing North Range Joint Venture ("NRJV") agreement. The
amendment (the "Wisner Amendment") provides Lonmin the option to earn a 50% initial interest in
Wallbridge's Wisner package of properties ("Wisner Properties"),
excluding the Broken Hammer development project and its immediate down
plunge extension, by making cash option payments and funding
exploration totalling $6 million over three years.
The Wisner Properties cover a 10 kilometre strike length of prospective
geology for footwall type Cu-PGE mineralization, including several
known Cu-PGE occurrences. "This agreement provides us with the funding
to explore along the mineralization trend for distal extensions of the
Broken Hammer deposit and to test other targets in the immediate area",
stated Marz Kord, President and CEO of Wallbridge. "It provides
significant exploration funding without further diluting our
shareholders. We are very pleased to be partnering with Lonmin on this
prospective land package."
Joint Venture Terms
Under terms of the Wisner Amendment, Lonmin can earn a 50% interest in
the Wisner Properties by making cash option payments and funding
exploration totalling $6 million over three years, as follows:
Lonmin will fund exploration costs on the Wisner Properties totalling
$3.6 million over three years, with minimum annual exploration
expenditures of $1.2 million;
Lonmin will make cash option payments to Wallbridge totalling 2/3 of
annual exploration costs with respect to the Wisner Properties (a
minimum of $800,000 per year over three years); and
Wallbridge will fund 40% of exploration costs on the Wisner Properties
over the same three year period.
Upon vesting its initial interest, Lonmin will have the option to earn a
15% additional interest by committing to fund the Wisner Properties
through to a definitive feasibility study.
This agreement will increase the 2013/2014 NRJV exploration budget to
$3.5M including the previously approved $1.5M exploration budget on the
14 NRJV properties (refer to press release dated October 10, 2013), for
the period from October 1, 2013, through September 30, 2014.
The initial exploration program on the Wisner Properties is already
underway with re-processing of existing geophysics, completion of
airborne geophysics, and ground geophysical surveys this winter.
Follow-up drilling is expected to start in mid-late winter.
Wisner Properties Description
Wallbridge's Wisner Properties include five contiguous properties
including two mining leases, one patent and 31 mining claims covering
1,120 hectares. These include the 98.5% Wallbridge owned Broken Hammer
property (excluding the Broken Hammer development project), the 100%
Wallbridge owned Wisner West property, the 78% Wallbridge owned Wisner
Glencore Joint Venture property, the 100% Wallbridge owned Wisner East
property, and the 100% Wallbridge owned Bowell property.
Work to date has identified several priority exploration targets on the
Wisner properties as follows:
Extensions to the Broken Hammer Cu-PGE development project;
A 1.5 km Cu-PGE trend at the Southwest Zone and South Zone occurrences;
Anomalous PGE values in Sudbury breccia on the outer flank of the Wisner
Surface EM, airborne EM, and IP anomalies in Sudbury breccia at Wisner
Exploration target areas are shown in Figures 1 and 2 below:
Figure 1: Wisner Package of Properties
Figure 2: Broken Hammer extension exploration potential
About Wallbridge Mining
Wallbridge Mining Company Limited (WM:TSX) is an established junior company, formed in 1996, whose mission is to
explore and develop platinum group elements (PGE's) in mining friendly
jurisdictions of North America.
Wallbridge is currently exploring and developing a large package of
properties in Sudbury, Ontario, Canada's premier mining district. These
include the pre-feasibility stage Broken Hammer development project and
significant exploration joint ventures with partners Lonmin Plc, Impala
Platinum Holdings Limited and Glencore.
In 2005, Wallbridge created Duluth Metals Limited (TSX:DM) to explore
and develop projects in Minnesota, USA. Duluth Metals has since defined
the world's largest undeveloped sulfide PGEs, copper and nickel deposit
which it is developing through Twin Metals Limited, a joint venture
with copper producer Antofagasta Plc. Wallbridge currently retains 10.1
million shares of Duluth Metals (8.1%).
In 2010, Wallbridge created Miocene Metals Limited (TSXV:MII) to explore
and develop seven porphyry copper-gold-molybdenum projects in British
Columbia, Canada, within a previously under-recognized belt of
Miocene-age intrusions. These projects are early stage with large
mineralized structures and alteration zones that are ready for drilling
with potential for large tonnage deposits. Wallbridge currently retains
28.4 million shares of Miocene Metals (40.5%).
This press release may contain forward-looking statements (including
"forward-looking information" within the meaning of applicable Canadian
securities legislation and "forward-looking statements" within the
meaning of the US Private Securities Litigation Reform Act of 1995)
relating to, among other things, the operations of Wallbridge and the
environment in which it operates. Generally, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved".
Wallbridge has relied on a number of assumptions and estimates in
making such forward-looking statements, including, without limitation,
the costs associated with the development and operation of its
properties. Such assumptions and estimates are made in light of the
trends and conditions that are considered to be relevant and reasonable
based on information available and the circumstances existing at this
time. A number of risk factors may cause actual results, level of
activity, performance or outcomes of such exploration and/or mine
development to be materially different from those expressed or implied
by such forward-looking statements including, without limitation,
whether such discoveries will result in commercially viable quantities
of such mineralized materials, the possibility of changes to project
parameters as plans continue to be refined, the ability to execute
planned exploration and future drilling programs, the need for
additional funding to continue exploration and development efforts,
changes in general economic, market and business conditions, and those
other risks set forth in Wallbridge's most recent annual information
form under the heading "Risk Factors" and in its other public filings.
Forward-looking statements are not guarantees of future performance and
such information is inherently subject to known and unknown risks,
uncertainties and other factors that are difficult to predict and may
be beyond the control of Wallbridge. Although Wallbridge has attempted
to identify important risks and factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors and risks that
cause actions, events or results not to be as anticipated, estimated or
intended. Consequently, undue reliance should not be placed on such
forward-looking statements. In addition, all forward-looking statements
in this press release are given as of the date hereof.
Wallbridge disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, save and except as may be required by
applicable securities laws. The forward-looking statements contained
herein are expressly qualified by this disclaimer.
PDF available at: http://stream1.newswire.ca/media/2013/12/17/20131217_C5053_DOC_EN_35055.pdf
PDF available at: http://stream1.newswire.ca/media/2013/12/17/20131217_C5053_DOC_EN_35056.pdf
SOURCE: Wallbridge Mining Company Limited
For further information:
Please visit the Company's website at www.wallbridgemining.com, or contact:
Vice President, Corporate Communications
Tel: (705) 682-9297 ext. 263