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Wallbridge Mining announces C$56 Million financing and KL Gold taking a big piece

Sep 17, 2020

Kirkland Lake Gold is upping its stake in Wallbridge Mining. Wallbridge has announced it has entered into an agreement with BMO Capital Markets, on behalf of itself and a syndicate of underwriters led by BMO Capital Markets, under which the Underwriters have agreed to buy, on a “bought deal” basis, 49,000,000 common shares of the Company (the “Common Shares”) at a price of C$1.15 per Common Share which will provide the Company with aggregate gross proceeds of approximately C$56 million (the “Offering”). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Common Shares issued in connection with the Offering to cover over-allotments, if any.

Kirkland Lake Gold Ltd. (“Kirkland Lake”) has certain participation rights and will participate in the Offering, increasing their post-closing ownership to approximately 9.9%.

The net proceeds from the Offering will be used for continued advancement of the Company’s Fenelon Gold Project and for general corporate purposes.

In respect of the Offering, the Common Shares will be offered by way of a short form prospectus in all of the provinces and territories of Canada, excluding Quebec. The Offering is expected to close on or about October 2, 2020 and is subject to Wallbridge receiving all necessary regulatory approvals.

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