TORONTO, April 3, 2012 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) ("Wallbridge") today announced that Lonmin Plc has advised that it is exercising its right to enter into a joint venture to acquire an interest in Wallbridge's North Range properties in the Sudbury area.
"The North Range properties provide a unique opportunity for grassroots discovery around the Sudbury basin, Canada's premier mining district," said Marz Kord, Wallbridge President, "This new agreement with Lonmin demonstrates the strength of our strategy of identifying projects and advancing them towards discovery while minimizing risk and dilution to shareholders."
Under terms of a private placement subscription agreement dated June 6, 2007 and amendments thereafter (the "Agreement"), which provided $3.9 million of funding for the initial exploration of these properties, Lonmin has the right to elect to enter into a joint venture on any of the North Range properties upon its review of the report detailing the results of the exploration funded by this investment. Lonmin has indicated it wishes to exercise its right with respect to 14 of the North Range properties covering an area of 408 square kilometres.
Terms of the new joint venture will be negotiated based on the principles set out in the Agreement, which provide for Lonmin to earn a 50% interest in Wallbridge's rights to the North Range properties, by spending twice the amount expended on the properties to date, subject to any underlying interests held by Third Parties.
Recent work by Wallbridge on the North Range properties has identified a number of priority exploration targets for platinum group metals, nickel, copper and gold. The work has also led to the discovery of 46.5 kilometres of new offset dyke structures and a number of new mineral occurrences. Offset dykes are important geological structures in Sudbury and over 25% of the ores mined in the region over the past 126 years have been hosted by these types of structures.
The Qualified Person responsible for the technical content of this press release is Joshua Bailey P.Geo., Vice President Corporate Development For Wallbridge Mining Company Limited.
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, palladium and gold projects in mining friendly jurisdictions of North America, with a particular focus on 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 financing exploration through joint ventures or spin-out companies. Wallbridge has 48 exploration to pre-feasibility stage mineral projects. 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 document 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.
For further information:
Please visit the Company's website at www.wallbridgemining.com, or contact:
Wallbridge Mining Company Limited
Joshua Bailey, M.Sc., P.Geo
Vice President Corporate Development
Tel: (705) 682-9297 ext. 240
Email: [email protected]