Wallbridge Mining Announces Miocene Exercise of Buy Back Option
TORONTO, Aug. 26, 2011 /CNW/ - Wallbridge Mining Company Limited (TSX:WM, FWB: WC7) ("Wallbridge" or the "Company") today announced that its spin out company Miocene Metals Limited "Miocene" has exercised its option repurchase from Wallbridge the 11.63% interest Wallbridge had earned in the Miocene properties by funding $500,000 worth of exploration expenditures on the properties in 2010.
Commenting on the transaction, Warren Holmes, Chairman of Wallbridge stated, "We congratulate Miocene on the successful completion of its Initial Public Offering and the recently announced start of its drilling program on its Salal Property. The repurchase of our remaining 11.63% interest in the property, is an important step forward for Miocene, as it gives them 100% control of these properties which will facilitate possible future transactions relating to the properties. As Miocene's largest shareholder, with a 43% ownership stake, we are extremely pleased to see them moving forward rapidly to advance these properties."
Under the terms of an Option and Joint Venture Agreement dated as of May 1, 2010 (the "Option and Joint Venture Agreement"), Wallbridge conveyed all of its interest in the BC Properties to Miocene Metals and retained the irrevocable and exclusive option to become the owner of a carried interest in the BC Properties by incurring expenditures in an aggregate amount of $500,000 on or before December 31, 2010. Wallbridge incurred these expenditures and thereby earned an 11.63% carried interest in the BC Properties. The buy-back provision pursuant to the terms of the Option and Joint Venture Agreement allowed Miocene to buy-back the 11.63% carried interest in the BC Properties for $600,000 during the first 6 months after the completion of the Company's IPO Offering.
About the Company
Wallbridge Mining Company Limited's primary focus is the exploration for platinum group elements ("PGE"), nickel and copper deposits in the Sudbury area of Ontario. The Sudbury area hosts one of the world's largest concentration of nickel deposits and is currently the most active mining camp in North America. Major joint venture partners in Sudbury include Xstrata Nickel, Lonmin Plc and Impala Platinum Holdings Limited. Wallbridge also has a significant shareholding in its spin out company, Duluth Metals Limited (DM:TSX), which is advancing its very large copper-nickel-platinum-palladium-gold deposit in northern Minnesota through feasibility in joint venture with Antofagasta plc, one of the world's major copper producers. Wallbridge also holds a major shareholding its latest spin out company, Miocene Metals Limited (MII:TSXV), which was formed to finance the exploration of a portfolio of copper-gold-molybdenum properties in southwestern BC.
This document may contain forward-looking statements relating to operations of Wallbridge or its subsidiaries or to the environment in which they operate. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and may be beyond Wallbridge's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. 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.
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