TORONTO, Nov. 20, 2014 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) ("Wallbridge") is pleased to announce that it has successfully negotiated an early prepayment of its $2M debt owing to Callinan Royalties Corporation ("Callinan") pursuant to a line of credit (the "LOC") entered into with Callinan on December 12, 2012 ("LOC Obligations").
The interest payable on such debt was also renegotiated such that interest is now calculated at the rate of 10% per annum instead of the greater of 10% per annum or a 1.5% NSR royalty prorated on the funds drawn. In accordance with the terms of the LOC amending agreement entered into by the parties on the date hereof (the "LOC Amending Agreement"), Wallbridge prepaid $1M of its LOC Obligations to Callinan leaving a principal balance of $1M.
Pursuant to the terms of the LOC Amending Agreement, the remaining $1M principal balance together with interest accrued thereon must be prepaid immediately after Wallbridge sells its Duluth Metals Limited ("Duluth") shares to Antofagasta Investment Company Limited ("Antofagasta"), an affiliate thereof or a third party in connection with the proposed acquisition of Duluth (see Wallbridge press release dated November 3, 2014). If the second prepayment is not made to Callinan as contemplated by the terms of the LOC Amending Agreement due to the proposed Duluth acquisition not closing prior to the end of the term of the LOC, the interest on the LOC Obligations will revert to its original prorated calculation. In such case, Wallbridge will still net an interest saving based on the prorated NSR calculation set forth in the LOC.
"We continue to review opportunities whereby we can strengthen our balance sheet as well as reducing our costs", stated Marz Kord, the President and CEO of Wallbridge. "With the Broken Hammer project in full operation benefiting from additional ore found in the top few benches, the royalties payable pursuant to the LOC would have been in excess of the 10% interest and with this early prepayment we can realize a reduced financing cost of approximately $100,000".
The term of the LOC as amended continues to be three years or until completion of the extraction and processing of mineral produced from the Broken Hammer project, whichever occurs first.
About Wallbridge Mining
Wallbridge Mining Company Limited (WM:TSX) is currently operating its first polymetallic mine, producing copper, platinum, palladium, and gold from the Broken Hammer open pit mine in Sudbury, Ontario, Canada's premier mining district.
Wallbridge is also actively exploring a large package of properties in Sudbury, including operating several significant exploration joint ventures with partners Lonmin Plc, Impala Platinum Holdings Limited and Glencore in Sudbury.
Wallbridge has a record of successfully generating high potential mineral projects and structuring partnerships and new companies to create value for its shareholders and its partners. As such, Wallbridge currently retains its stake in its first spin-out company, Duluth Metals Limited (TSX:DM), at 5.05 million shares as well as 28.4 million shares (40.5%) in its second spin-out company, Miocene Metals Limited (TSXV:MII).
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 the Antofagasta acquisition of Duluth is completed, 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 Company's website at www.wallbridgemining.com, or contact: Linda Zubal, Vice President, Corporate Communications, Tel: (705) 682-9297 ext. 263, Email: [email protected]