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Wallbridge Mining Company Limited Announces C$17 Million Bought Deal Financing

Mar 29, 2021

Wallbridge Mining Company Limited has announced today that 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, 18,316,000 charity flow-through common shares of the Company at a price of C$0.95 per Charity Flow-Through Common Share for aggregate gross proceeds of approximately C$17.4 million. The company has granted the underwriters an option, exercisable at the offering price up to 48 hours prior to closing of the Offering, to purchase up to an additional 15% of the Charity Flow-Through Common Shares issued in connection with the Offering.   Each Charity Flow-Through Common 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).

Kirkland Lake Gold Ltd. (“Kirkland Lake”) has certain participation rights and will participate in the purchase of back-end common shares of the Company, in order to maintain its existing 9.9% ownership position in the Company.

The gross proceeds from the sale of the Charity Flow-Through Common Shares will be used to support the Company’s 170,000 m drill program in 2021 at the Fenelon project, which qualifies as “Canadian exploration expenses” (“CEE”) and “flow-through mining expenditures” both within the meaning of the Income Tax Act (Canada). The Company will renounce such CEE with an effective date of no later than December 31, 2021.

The Charity Flow-Through Common Shares will be offered by way of a short form prospectus in all of the provinces of Canada. The Offering is expected to close on or about April 15, 2021 and is subject to the Company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

The securities offered 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

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. The Company completed approximately 102,000 metres of drilling in 2020 and has begun a fully-funded 170,000-metre drill program and the 2021 portion (4,800 metres) of a 10,000-metre, two-year underground exploration development program in 2021. The Company intends to complete a maiden resource on the Fenelon Gold System in the third quarter of 2021.

Wallbridge now holds several kilometres surrounding its rapidly expanding Fenelon discovery providing room for growth, as well as future mine development flexibility. Wallbridge's land holdings in Québec along the Detour-Fenelon Gold Trend are over 900.0 km2, improving Wallbridge's potential for further discoveries for over 90-kilometre strike length in this under-explored belt.

Wallbridge is also the operator of, and a 17.8% shareholder in, Lonmin Canada Inc., a privately-held company with a portfolio of nickel, copper, and platinum-group metals (PGM) projects in Ontario's Sudbury Basin.

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