TORONTO, Dec. 13, 2012 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) ("Wallbridge" or the "Corporation") today announced that it has
completed the transaction with Callinan Royalties ("Callinan") whereby
Callinan has provided Wallbridge with a Line of Credit ("LOC") for
$2.0M to fund the development of the Broken Hammer Project.
Additionally Callinan has purchased 8,333,333 units ("Units") of
Wallbridge at a price of C$0.18 (Canadian) per Unit for gross proceeds
of $1.5M (the "Equity Financing").
Each Unit is comprised of one common share in the capital of the
Corporation and one-half of one common share purchase warrant (each
whole common share purchase warrant being hereinafter referred to as a
"Warrant"). Each Warrant entitles the holder thereof to purchase one
common share in the capital of the Corporation at an exercise price of
C$0.27 (Canadian) per warrant share for a period of three years from
the closing date of the transaction.
The interest charged on the LOC will be the greater of 10% annual
interest or a maximum 1.5% NSR royalty prorated on the funds drawn down
for a period of 3 years or until the completion of the extraction and
processing of minerals produced from the Broken Hammer Project,
whichever be the first to occur. Callinan will receive the right to
purchase a new 1.0% NSR on the Broken Hammer Project for $2M with an
In connection with the Equity Financing, Callinan will also receive two
royalty options which can be exercised on any of the currently 100%
owned projects of the Corporation, other than the Broken Hammer
project. Half of the funds raised from the Equity Financing will be
used to fund the exploration work on the 100% owned properties during a
period of three years from the closing date of the transaction and the
balance of funds will be used for the Corporation's general working
Each royalty option gives Callinan the right to purchase up to 2% NSR on
any particular 100% owned property (other than the Broken Hammer
property) at any time during the option term by paying the following:
For the first 1% NSR, $2M with an inflation adjustment, and
For the second 1% NSR, a value equal to the after-tax NPV using a
negotiated discount rate.
Marz Kord, P. Eng., M. SC., MBA, President and Chief Executive Officer
of Wallbridge is the qualified person responsible for the contents of
this press release.
About Wallbridge Mining
Wallbridge Mining Company Limited (WM:TSX) is an established metals company working to build sustainable growth
for investors through discovery and development of mineral resources.
Wallbridge specializes in copper, platinum, palladium gold, and nickel
projects in mining friendly jurisdictions of North America, with a
particular focus on Sudbury, Ontario. Wallbridge's position in Sudbury
offers exposure to unique large-scale discovery upside in Canada's
premier mining district.
Wallbridge has a record of generating high potential projects and
financing exploration through joint ventures or spin-out companies.
Wallbridge has 42 projects in Sudbury, Ontario, including 12 joint
ventures with partners Impala Platinum Holdings Limited, Lonmin Plc,
Xstrata Nickel and a number of junior mining companies.
Wallbridge also holds significant equity interests in spin-out companies
Duluth Metals Limited (DM:TSX) and Miocene Metals Limited (MII:TSX-V).
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.
SOURCE: Wallbridge Mining Company Limited
For further information:
Please visit the Corporation's website at www.wallbridgemining.com, or contact:
Wallbridge Mining Company Limited
Joshua Bailey, M.Sc., P.Geo
Vice President, Exploration
Tel: (705) 682-9297 ext. 240
Director of Corporate Communications
Tel: (705) 682-9297 ext. 263