Wallbridge Mining Company has entered into a joint venture with Lonmin PLC to back its exploration work in Sudbury.
Lonmin has agreed to purchase 13,157,895 units of Wallbridge at a price of 19 cents per unit, based on an agreement reached Dec. 13.
"This recent investment shows Lonmin's continued confidence and support for our exploration work in Sudbury,” Wallbridge CEO Alar Soever said in a news release. “The Sudbury Basin is the most attractive target area in the world for the discovery of high grade copper, nickel and platinum deposits.”
Each unit is comprised of one common share in the capital of the Corporation and one half common share purchase warrant, which entitles the holder to purchase one common share in the capital of the corporation at an exercise price of 40 cents per whole common share for a period ending Dec. 31, 2012. Lonmin previously acquired 10,800,000 common shares of Wallbridge in 2007.
Sixty per cent of the proceeds will be used to advance exploration in the Sudbury area.
"We've been exploring for PGMs with our joint venture partners in the Sudbury Basin for nearly 10 years and are now beginning to see the fruits of that hard work,” Lonmin CCO Albert Jamieson said in the release. “We look forward to progressing the projects in the coming year."
Wallbridge specializes in nickel, copper, platinum and palladium, and is focusing on its Broken Hammer property, located in the Sudbury district.
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