TORONTO, Aug. 26, 2014 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) ("Wallbridge") is pleased to announce that it has secured a US $1.5 million bridge loan (the "Bridge Loan") from Auramet International LLC ("Auramet"). This funding will provide Wallbridge with additional working capital during the current start-up phase of the Broken Hammer project, and will bridge the period until sufficient revenue is received to achieve payback of the costs required to bring Broken Hammer into production and realize upon its revenue potential.
To date concentrate with a net payable metal value of approximately US $1.3 M at current metal prices has already been shipped to smelters for final processing. Payment will be received in the coming months as provided for under the smelting agreements.
Pursuant to the terms of the Bridge Loan, Auramet advanced US $1,250,000 to Wallbridge on closing and Wallbridge is required to pay US $1,500,000 on maturity of the loan in satisfaction of all interest and other costs associated with this facility. In consideration of the Bridge Loan, Wallbridge has also granted Auramet 600,000 share purchase warrants of Wallbridge with an exercise price of CAD$0.15 per warrant share and which expire on August 20, 2016.
The Bridge Loan will mature on May 31, 2015 and any equity or debt proceeds received by Wallbridge until such date will be used towards retiring this debt. The Bridge Loan is secured by one of Wallbridge's prime assets: its Duluth Metals shares and other personal property of Wallbridge which was not otherwise encumbered.
Wallbridge also recently signed an agreement with Auramet whereby Auramet agreed to take up all of Wallbridge's precious metal content in the gravity concentrate produced from the Broken Hammer mine.
Commenting on these developments, Marz Kord, President and CEO of Wallbridge stated, "This loan will allow Wallbridge to comfortably meet its working capital requirements during a critical phase of Wallbridge's Broken Hammer production efforts. We are encouraged by Auramet's continued and strong commitment to Wallbridge and the Broken Hammer project as evidenced by its purchase agreement and now through Auramet's financing support."
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 founding stake in its first spin-out company, Duluth Metals Limited (TSX:DM), at 10.1 million shares (7.4%) 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 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]