TORONTO, June 14, 2012 /CNW/ - Wallbridge Mining Company Limited (TSX: WM) today announced that it has reached agreement with Miocene Metals Limited (TSX-V: MII) for a $1 million Line of Credit ("LOC"), which will be used to fund Miocene's summer exploration program. Work will be focused on the MacKenzie Property, where surface copper mineralization has been traced over a 1.2 kilometre strike length. Objectives of Miocene's 2012 program are to obtain the first drill intercepts of the high-grade mineralized structures which have been identified on surface and to identify the intrusive source for this mineralization. Marz Kord, President and CEO of Wallbridge stated, "This agreement is the best way of ensuring the ability of Miocene to build shareholder value during this extremely difficult period. As Miocene's major shareholder, Wallbridge and its shareholders will also benefit from the success of Miocene."
Commenting on the agreement with Wallbridge, Bruce Jago, President and CEO of Miocene Metals stated, "We are pleased to have been able to complete this arrangement with Wallbridge. It allows us to carry out a significant summer program, without unduly diluting our shareholders during this period of extremely low valuations for junior companies. We are also continuing with our efforts to secure joint venture funding for our Rogers Creek and Salal properties as well as raising additional capital through the equity markets."
The Mackenzie property is located 80 kilometres to the northwest of Pemberton BC and is one of Miocene Metals key copper-gold exploration properties. As reported in a February 17, 2012 press release, the MacKenzie property was increased in size 8-fold from 36.3 square kilometres to 299.03 square kilometres. The property was increased in size on the basis of mapping and sampling results in 2010 and 2011, which suggested high-grade copper-gold surface exposures were related to a buried copper-gold porphyry system, which will be the focus of Miocene's 2012 exploration program.
Terms of the LOC with Miocene:
The LOC shall be in the principal amount of $1,000,000 and advanced in monthly instalments based upon Miocene's monthly budgets. Principal amounts advanced shall bear interest at the rate of 8% per annum (calculated annually not in advance) on each principal amount advanced calculated from the date of advance until repayment of such advance in full. The LOC shall be repaid in full, including all interest accrued thereon, on the earlier of March 31, 2013 or immediately upon receipt of any joint venture financing or private placement financing, in either case which results in net proceeds to Miocene of not less than $1,250,000. Miocene shall provide a first charge on Miocene's two properties known as Salal and MacKenzie together with a collateral assignment of Miocene's Portable Assessment Credits ("PAC") net of Miocene's 2013 PAC requirements as at December 31, 2012. Miocene covenants that during the term of the LOC its working capital, excluding the amounts advanced under the LOC, shall not be negative. Should such working capital amount become negative during the term of the LOC, the LOC and all interest accrued thereon shall immediately become payable. The contractual provisions of this agreement shall be interpreted and construed in accordance with the laws having application in the Province of Ontario, Canada. The agreement is subject to approval of those directors of each of Miocene and Wallbridge who are not directors or officers of the other company. The agreement is also subject to any approval which may be required from the TSX Venture Exchange.
The Qualified Person responsible for the technical content of this press release is Marz Kord, P. Eng., M. Sc., MBA, President & CEO of Wallbridge Mining.
About Wallbridge Mining
Wallbridge Mining Company Limited (WM:TSX) is an established metals company working to build sustainable growth for investors through discovery and development of mineral resources.
Wallbridge specializes in nickel, copper, platinum, palladium and gold projects in mining friendly jurisdictions of North America, with a particular focus on Sudbury, Ontario. Wallbridge's position in Sudbury offers unique large-scale discovery upside in Canada's premier mining district.
Wallbridge has a record of generating high potential projects and financing exploration through joint ventures or spin-out companies. Wallbridge has 48 exploration to pre-feasibility stage mineral projects. These include 12 joint ventures with partners Impala Platinum Holdings Limited, Lonmin Plc, Xstrata Nickel and a number of junior mining companies.
Wallbridge also holds significant equity interests in spin-out companies Duluth Metals Limited (DM:TSX) and Miocene Metals Limited (MII:TSV).
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.