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Wallbridge Mining announces closing of C$15.0 Million Bought Deal Financing

Feb 25, 2022

Wallbridge Mining Company Limited has completed the previously announced "bought deal" public offering through the issuance of an aggregate of 27,300,000 charity flow-through common shares of the Company (each, a "Charity Flow-Through Share") at a price of C$0.55 (the "Offering Price") per Charity Flow-Through Share for gross proceeds of C$15,015,000 to the Company (the "Offering"). The Charity Flow-Through Shares were issued and sold pursuant to the terms of an underwriting agreement dated February 8, 2022 among the Company, BMO Capital Markets, as lead underwriter and sole bookrunner, Cormark Securities Inc., Eight Capital and Paradigm Capital Inc. (collectively, the “Underwriters”) .

Kirkland Lake Gold Ltd. has certain participation rights and participated in the Offering in order to maintain its existing 9.9% ownership position in the Company (on a non-diluted basis) by acquiring as a back-end buyer 6,362,519 common shares in the capital of the Company. Effective as of February 8, 2022, Kirkland Lake Gold Ltd. became a wholly owned subsidiary of Agnico Eagle Mines Limited. William Day Holdings Limited also participated, as a back-end buyer in the Offering acquiring 1,612,903 common shares in the capital of the Company.  

The gross proceeds from the Offering will be used to support the Company’s 2022 exploration program at the Company’s Detour-Fenelon Gold Property.

In respect of the Offering, the Charity Flow-Through Shares were offered by way of a short form prospectus dated February 18, 2022, filed in all of the provinces of Canada.

The Underwriters were paid a cash commission of 6% on the gross proceeds of the Offering.

Each Charity Flow-Through Share will qualify as a "flow-through share" within the meaning of subsection 66(15) of the Income Tax Act (Canada) and, in respect of eligible Québec resident subscribers, section 359.1 of the Taxation Act (Québec). The gross proceeds from the sale of the Charity Flow-Through Shares will be used by the Company to incur qualifying expenses which will be renounced with an effective date of no later than December 31, 2022 to the initial purchasers of the Charity Flow-Through Shares in an aggregate amount not less than such proceeds raised.

The Company expects to close its previously announced private placement of 24,611,351 National flow-through common shares (the “National FT Shares”) and 12,357,000 Quebec flow-through common shares (the “Quebec FT Shares”)for aggregate gross proceeds of C$14,172,570 (the “Private Placement”) later today. The National FT Shares are being issued at a price of C$0.37 and the Quebec FT Shares at a price of C$0.41. In connection with the Private Placement, the Company will pay a cash finder’s fee of 4%.

None of the securities offered in the Offering or the Private Placement have been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Wallbridge Mining

Wallbridge is currently advancing the exploration and development of its 100%‒owned Fenelon Gold property located along the Detour‒Fenelon Gold Trend, an emerging gold belt in northwestern Québec. Within three years of the discovery of the Area 51 and Tabasco/Cayenne Zones, through drill programs totaling over 300,000 metres, Wallbridge reached an important milestone by announcing a maiden Mineral Resource Estimate (MRE) for Fenelon and an updated MRE for the Martiniere Gold Property totalling 2.67 Moz Au in the indicated category and 1.72 Moz Au in the inferred category (for details of the MREs see Wallbridge’s press release dated November 9, 2021 and Technical Report filed December 23, 2021 on SEDAR).

Tags: Quebec / Deals & Financial / Gold / All Articles