Wallbridge Fully Funded to Complete Fenelon Gold Bulk Sample
TORONTO, May 1, 2018 /CNW/ - Wallbridge Mining Company Limited (TSX:WM, FWB: WC7) ("Wallbridge" or the "Company") is pleased to announce work on the 35,000-tonne bulk sample at its Fenelon Gold Property is ahead of schedule and that the following milestones have been achieved:
- All financing necessary to complete the bulk sample is now in place;
- A 79 person camp has been established;
- The existing pit and underground workings have been dewatered;
The underground mining contractor has mobilized to site and is beginning work; "Due to the hard work of the team at Fenelon Gold, dewatering of the pit and underground as well as camp and contractor mobilization was completed safely and successfully, slightly ahead of schedule. We are on track with our plans to begin ore production in the third quarter of 2018," said Marz Kord, President and CEO of Wallbridge. "The rehabilitation of the existing ramp and levels is expected to be completed in approximately four weeks, at which time diamond drilling from underground and ramp development to lower levels will be conducted concurrently. Drilling from the existing exploration drift on the 5210 level will in-fill the current resource, delineate stopes as well as test extensions of the resource up and down plunge in the top 150 metres. Deeper drilling will be completed later in the year from the 5150 and 5135 levels once those are developed."
Wallbridge has received the first advance under the $8M USD bridge loan (the "Auramet Loan") from Auramet International LLC ("Auramet") (as previously disclosed in a press release dated March 27, 2018), for an amount of $3,200,000 USD. As a condition to the Auramet Loan, part of this amount was used to repay the CAD$2.5M loan to William Day Holdings Limited, previously advanced to the Company to purchase the Fenelon Gold Property.
As another condition to the Auramet Loan, Wallbridge will close, on or about May 2, 2018, a non-brokered private placement through the issuance of 28,518,657 common shares ("Shares") of the Company at a price of C$0.07 per Share for gross proceeds of $1,996,306 (the "Offering"). No finder fees or commissions are being paid in connection with the Offering. William Day Holdings Limited ("William Day") will acquire 27,142,857 Shares for total consideration to the Company of $1,900,000 (the "Acquisition").
Prior to the Acquisition, William Day owned 27,652,050 Shares of the Company representing approximately 9.35% of the issued and outstanding Shares of the Company. In addition, William Day currently owns 11,722,050 additional Share purchase warrants. Following the Acquisition, William Day will own 54,794,907 Shares of the Company representing approximately 16.98% of the issued and outstanding Shares on a non-diluted basis, and approximately 19.89% on a partially diluted basis.
The Company's plans include the extraction of 35,000 tonnes of mineralized material with a grade ranging between 18 g/t and 25 g/t from planned stopes within the first 125 metres from surface. Approximately 8,000 metres of underground drilling is planned in conjunction with the bulk sample. The majority of this drilling is designed to expand the resource along strike and to depth. An additional 10,000 metre surface drilling program is scheduled to start in the latter part of this year to follow known mineralized zones and expand resources at depth and further away from the mine workings.
Wallbridge's Fenelon Gold Property is located in northwestern Quebec proximal to the Sunday Lake Deformation Zone ("SLDZ") which hosts the Detour Gold Mine in Ontario, and Balmoral Resources' gold deposits at Martiniere. The Fenelon Gold Property hosts the Discovery Zone gold deposit and surrounding 4 km strike length of a gold-hosting secondary splay of the SLDZ.
Since acquiring the property in late 2016, Wallbridge has completed an updated resource estimate and a positive pre-feasibility study on the existing resource (see Wallbridge press release dated February 02, 2017). In addition, Wallbridge has completed 33 drill holes totalling 6,348 metres in three surface exploration drilling campaigns at Fenelon. Drilling significantly extended existing zones and discovered several new parallel zones (see Wallbridge press release dated December 13, 2017). Highlight intersections from these programs included 260.4 g/t Au over 7.02 metres, 141.2 g/t gold over 7.06 metres and 311.1 g/t gold over 3.06 metres.
The Qualified Person responsible for the technical content of this press release is Marz Kord, P. Eng., M. Sc., MBA, President and CEO of Wallbridge.
About Wallbridge Mining
Wallbridge is establishing a pipeline of projects that will support sustainable production and revenue as well as organic growth through exploration and scalability.
Wallbridge is currently developing its 100%-owned high-grade Fenelon Gold property in Quebec with ongoing exploration and a bulk sample in 2018. Wallbridge is also pursuing other additional advanced-stage projects which would add to the Company's near term project pipeline. These discussions benefit from the operating capabilities Wallbridge demonstrated by safely and efficiently mining the Broken Hammer deposit in Sudbury, which was completed in October 2015. Wallbridge is also continuing partner-funded exploration on its large portfolio of nickel, copper, and PGM projects in Sudbury, Ontario, with a focus on its high-grade Parkin project.
Wallbridge also has exposure to active exploration for copper and gold in Jamaica and British Columbia through its 11.5% ownership of Carube Copper Corp. (CUC:TSX-V, formerly Miocene Resources Limited).
This press release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the operations of Wallbridge and the environment in which it operates. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Wallbridge has relied on a number of assumptions and estimates in making such forward-looking statements, including, without limitation, the costs associated with the development and operation of its properties. Such assumptions and estimates are made in light of the trends and conditions that are considered to be relevant and reasonable based on information available and the circumstances existing at this time. A number of risk factors may cause actual results, level of activity, performance or outcomes of such exploration and/or mine development to be materially different from those expressed or implied by such forward-looking statements including, without limitation, whether such discoveries will result in commercially viable quantities of such mineralized materials, the possibility of changes to project parameters as plans continue to be refined, the ability to execute planned exploration and future drilling programs, the need for additional funding to continue exploration and development efforts, changes in general economic, market and business conditions, and those other risks set forth in Wallbridge's most recent annual information form under the heading "Risk Factors" and in its other public filings. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of Wallbridge. Although Wallbridge has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof.
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. The forward-looking statements contained herein are expressly qualified by this disclaimer.
SOURCE Wallbridge Mining Company Limited
Please visit the Company's website at www.wallbridgemining.com or contact: Wallbridge Mining Company Limited, Marz Kord, P. Eng., M. SC., MBA President & CEO, Tel: (705) 682-9297 ext. 251, Email: [email protected]; David Ellis, Investor Relations, Tel: (416) 704-0937, Email: [email protected]
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