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Wallbridge Mining announces closing of financing as KL Gold ups its percentage

Oct 2, 2020

Kirkland Lake Gold clearly has its eyes on Fenelon. Wallbridge Mining Company Limited announced this morning that it has completed a previously announced "bought deal" public offering.

In the news release, Wallbridge revealed that KL Gold made a substantial investment. In connection with the Offering, Kirkland Lake Gold Ltd. ("Kirkland Lake") acquired 20,000,000 Common Shares to increase its ownership interest in the Company to approximately 9.9% (on a non-diluted basis) in accordance with the non-dilution rights granted to Kirkland Lake by the Company pursuant to a participation agreement between the Company and Kirkland Lake dated December 6, 2019.

The company issued 55,500,000 common shares of the company at a price of C$1.15 for gross proceeds of C$63,825,000, inclusive of the partial exercise of the over-allotment option by the Underwriters (as hereinafter defined) to acquire an additional 6,500,000 Common Shares at a price of C$1.15 per Common Share (the "Offering").

The Common Shares were issued and sold pursuant to the terms of an underwriting agreement dated September 21, 2020, among the Company, BMO Nesbitt Burns Inc., as lead underwriter and sole bookrunner, Eight Capital, RBC Dominion Securities Inc. and Paradigm Capital Inc. (collectively, the "Underwriters"). 

In respect of the Offering, the Common Shares were offered by way of a short form prospectus dated September 28, 2020 filed in all of the provinces of Canada, excluding Quebec.

The Underwriters were paid a cash commission of 5% on the gross proceeds of the Offering, excluding Kirkland Lake's participation. The net proceeds from the Offering will be used for continued advancement of the Company's Fenelon Gold Project and for general corporate purposes.

The securities offered in this press release have not 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 Company Limited

Wallbridge is currently advancing the exploration and development of its 100%-owned Fenelon Gold property which is located along the Detour-Fenelon Gold Trend, an emerging gold belt in northwestern Québec with an ongoing, fully-funded 100,000-metre exploration drill program in 2020. 

The recent acquisition of Balmoral Resources has secured for Wallbridge a buffer of several kilometres surrounding its rapidly expanding Fenelon discovery providing room for growth, as well as future mine development flexibility. This acquisition has also significantly expanded Wallbridge's land holdings in Québec along the Detour-Fenelon Gold Trend (from 10.5 km2 to over 900.0 km2), improving Wallbridge's potential for further discoveries for over 90-kilometre strike in this under-explored belt.

Wallbridge is also the operator of, and a shareholder in, Lonmin Canada Inc., a privately-held company with a large portfolio of nickel, copper, and platinum-group metals (PGM) projects in Ontario's Sudbury Basin.

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