Wallbridge Mining Company Limited (TSX:WM) today announced that it had entered
into an agreement (which is subject to approval of the TSX) with the world's
third largest platinum producer Lonmin Plc ("Lonmin") whereby Lonmin will purchase 13,157,895 units ("Units")
of Wallbridge at a price of C$0.19 (Canadian)
per Unit which was calculated based on the 90 day volume-weighted average price
to December 13, 2011, being the date the parties agreed upon the pricing for
the transaction.
"This recent
investment shows Lonmin's continued confidence and
support for our exploration work in Sudbury. The Sudbury Basin is the most
attractive target area in the world for the discovery of high grade copper,
nickel and platinum deposits," stated Alar Soever,
CEO of Wallbridge.
"The long term
relationship with Lonmin since January 2002
demonstrates that Lonmin continues to be not only a
great Joint Venture partner, but also a supportive shareholder of Wallbridge in our exploration work in Sudbury," said Marz Kord, President of Wallbridge.
Albert Jamieson, CCO of Lonmin Plc said "We've been
exploring for PGMs with our Joint Venture partners in Sudbury Basin for nearly
10 years and are now beginning to see the fruits of that hard work. We look
forward to progressing the projects in the coming
year."
Each Unit is comprised of
one common share in the capital of the Corporation and one half common share
purchase warrant (each whole common share purchase warrant being hereinafter
referred to as a "Warrant"). Each Warrant entitles the holder to
purchase one common share in the capital of the Corporation at an exercise
price of C$0.40 (Canadian) per whole common share for a period
ending December 31, 2012. Lonmin had previously
acquired 10,800,000 common shares of Wallbridge in
2007.
Sixty percent of the
proceeds will be used to advance exploration in the Sudbury area.
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 and palladium projects in mining friendly jurisdictions of North
America, with a particular focus in 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 advancing these by financing exploration through either
joint ventures or spin-out companies. Wallbridge
currently has 48 mineral projects ranging from grassroots exploration to
pre-feasibility stage. 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).