Wallbridge Mining Company has entered into an agreement with Callinan Royalties to secure capital for its Broken Hammer exploration project.
Under the agreement, Callinan will provide Wallbridge with $2 million to fund the development of Broken Hammer, its Sudbury-area copper and platinum group metal project. Callinan will also purchase 8,333,333 units of Wallbridge at a price of 18 cents per unit for gross proceeds of $1.5 million, subject to the approval of the Toronto Stock Exchange.
Marz Kord, president and CEO of Wallbridge, said the capital would allow the Broken Hammer plans to be accelerated without significant equity dilution, while bolstering the case for the development and broadening its strong shareholder base.
“The investment by Callinan reaffirms our position that not only does Wallbridge have significant core assets in our investments in Duluth Metals and Miocene Metals, but that there is significant value in our Sudbury exploration assets which to date has not been reflected in our market capitalization," he said in a news release.
Wallbridge has 42 projects in Sudbury, including 12 joint ventures with partners Impala Platinum Holdings Limited, Lonmin PLC, Xstrata Nickel and a number of junior mining companies.
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