TORONTO, Jan. 17, 2012 /CNW/ - Wallbridge Mining Company Limited (TSX:WM) today announced that it had entered into an agreement (which is subject to approval of the TSX) with the world's third largest platinum producer Lonmin Plc ("Lonmin") whereby Lonmin will purchase 13,157,895 units ("Units") of Wallbridge at a price of C$0.19 (Canadian) per Unit which was calculated based on the 90 day volume-weighted average price to December 13, 2011, being the date the parties agreed upon the pricing for the transaction.
"This recent investment shows Lonmin's continued confidence and support for our exploration work in Sudbury. The Sudbury Basin is the most attractive target area in the world for the discovery of high grade copper, nickel and platinum deposits," stated Alar Soever, CEO of Wallbridge.
"The long term relationship with Lonmin since January 2002 demonstrates that Lonmin continues to be not only a great Joint Venture partner, but also a supportive shareholder of Wallbridge in our exploration work in Sudbury," said Marz Kord, President of Wallbridge.
Albert Jamieson, CCO of Lonmin Plc said "We've been exploring for PGMs with our Joint Venture partners in Sudbury Basin for nearly 10 years and are now beginning to see the fruits of that hard work. We look forward to progressing the projects in the coming year."
Each Unit is comprised of one common share in the capital of the Corporation and one half common share purchase warrant (each whole common share purchase warrant being hereinafter referred to as a "Warrant"). Each Warrant entitles the holder to purchase one common share in the capital of the Corporation at an exercise price of C$0.40 (Canadian) per whole common share for a period ending December 31, 2012. Lonmin had previously acquired 10,800,000 common shares of Wallbridge in 2007.
Sixty percent of the proceeds will be used to advance exploration in the Sudbury area.
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 nickel, copper, platinum and palladium projects in mining friendly jurisdictions of North America, with a particular focus in Sudbury, Ontario. Wallbridge's position in Sudbury offers unique large-scale discovery upside in Canada's premier mining district.
Wallbridge has a record of generating high potential projects and advancing these by financing exploration through either joint ventures or spin-out companies. Wallbridge currently has 48 mineral projects ranging from grassroots exploration to pre-feasibility stage. These include 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:TSV).
This press release may contain forward-looking statements relating to operations of Wallbridge or its subsidiaries or to the environment in which they operate. 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.
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