TORONTO, June 6 /CNW/ - Wallbridge Mining Company Limited (TSX:WM;
FWB:WC7) today announced that it had entered into an agreement (which is
subject to approval of the TSX) with global platinum producer Lonmin Plc
("Lonmin") whereby Lonmin will purchase 10,800,000 units ("Units") of
Wallbridge at a price of C$0.60 per Unit. This represents a 25 to 30% premium
to the recent trading price of Wallbridge shares. Wallbridge has the third
largest land position in the highly active Sudbury Mining Camp.
"This investment by Lonmin is a big vote of confidence in our exploration
work in Sudbury. The Sudbury Basin still remains one of the most attractive
targets for a large-scale copper, nickel and platinum deposit," stated Alar
Soever, President of Wallbridge. "This cements a relationship with Lonmin that
we have had since January 2002, when they entered into the Sudbury Camp Joint
Venture with us. They have been excellent joint venture partners, and now we
welcome them as shareholders."
Each Unit is comprised of one common share in the capital of Wallbridge
and one half common share purchase warrant ("Warrant"). Each Warrant entitles
the holder to purchase one common share in the capital of the Corporation at
an exercise price of C$1.00 per Warrant for a period of three years from the
date of issuance. Together the Units represent 18.19% of the fully diluted
share capital of the Corporation (assuming exercise of all the Warrants).
Sixty percent of the proceeds will be used to advance exploration of
Wallbridge's North Range properties where Wallbridge has found some new
mineralized showings. Lonmin will have an option to enter into a Joint Venture
on these properties, after this initial expenditure is completed. Lonmin will
also have a right of first refusal on Wallbridge's other Sudbury area
properties for a period of five years, subject to any existing underlying
agreements with other parties. Currently Wallbridge is conducting a summer
drilling, mapping and geophysics exploration program on the North Range
properties, a strategic land package consisting of 35,422 hectares. Wallbridge
has been a leader in advancing the exploration of footwall rocks in the
Sudbury Igneous Complex by developing new and innovative ideas for this area.
About Wallbridge Mining
Wallbridge Mining Company Limited explores for and develops nickel,
copper and platinum group element ("PGE") deposits. The Company's principal
properties are located in the Sudbury Basin in Ontario. The Sudbury area hosts
the world's largest concentration of nickel deposits and is currently the most
active mining camp in North America. Wallbridge also has a major shareholding
in Duluth Metals Limited, which has a significant property position in the
rapidly emerging Duluth Complex base metal camp in Minnesota.
This document may contain forward-looking statements relating to
Wallbridge's operations or to the environment in which it operates. Such
statements are based on operations, estimates, forecasts and projections. They
are not guarantees of future performance and involve risks and uncertainties
that are difficult to predict and may be beyond Wallbridge's control. A number
of important factors could cause actual outcomes and results to differ
materially from those expressed in forward-looking statements, including those
set forth in other public filings. In addition, such statements relate to the
date on which they are made. Consequently, undue reliance should not be placed
on such forward-looking statements. 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.
For further information:
For further information: Please visit the Company's website at
www.wallbridgemining.com, or contact: Wallbridge Mining Company Limited, Alar
Soever, President, Tel: (705) 682-9297, Email: firstname.lastname@example.org;
Mara Strazdins, Vice-President, Investor Relations, Tel: (416) 369-1500, Ext.
222, Email: email@example.com