Press ReleasesJune 09, 2005
Wallbridge Board Approves Special Warrant Dividend. Wallbridge America Limited to Acquire Minnesota Assets and Pursue Financing, Stock Exchange Listing
Toronto, Ontario - June 9, 2005 - Wallbridge Mining Company Limited (TSX: WM) today announced that the Company's Board of Directors has approved a plan that would see the Company distribute, to its shareholders, special warrants exchangeable into shares of Wallbridge America Limited. Wallbridge America Limited will be a new company that will acquire all of Wallbridge's Minnesota exploration assets, consisting of the Maturi Extension copper-nickel deposit located within the Duluth Complex in northeastern Minnesota. The Toronto Stock Exchange has conditionally accepted notice of the dividend-in-kind of special warrants.
"This is the first step towards enhancing value for Wallbridge shareholders with respect to our Minnesota holdings," stated Wallbridge Chairman and CEO, Risto Laamanen. "As a stand alone entity, Wallbridge America Limited will more easily be able to finance advancement of this property and will represent to our shareholders a direct investment in an exploration property with incredible potential."
"The Company feels strongly that this potential is not reflected in the price of Wallbridge shares. In undertaking this reorganization, we are confident that Wallbridge shareholders, in becoming direct shareholders of Wallbridge America Limited, will be rewarded accordingly, without incurring any dilution in Wallbridge Mining Company Limited."
Under the terms of the plan, shareholders of Wallbridge will receive a dividend-in-kind of one special warrant of Wallbridge America Limited for every four shares of Wallbridge held as of a record date to be fixed by the Board of Directors. Following this transaction, Wallbridge America Limited will acquire, from Wallbridge, all of the outstanding shares of the Wallbridge subsidiary that currently holds all of the Company's Minnesota exploration assets. In exchange for the shares in this subsidiary, Wallbridge will receive a 2% net smelter return royalty. Upon Wallbridge America Limited completing a financing of at least $3,000,000, becoming a public company and obtaining a listing on a recognized stock exchange, each special warrant will automatically convert into a common share of Wallbridge America Limited. In the event that Wallbridge America Limited does not complete the financing and listing within 6 months of the distribution date, the special warrants will expire and Wallbridge America Limited will remain a wholly-owned subsidiary of the Company.
Immediate plans for Wallbridge America Limited will be to complete a private placement financing, complete an initial public offering of shares, obtain a listing on the TSX Venture Exchange, and initiate an aggressive exploration program on its Minnesota property. In undertaking this exploration program, Wallbridge America Limited's goal is to establish a mineral resource for the Maturi Extension deposit, which has the best grade characteristics of all known deposits in the Duluth Complex. The first phase of work will consist of substantial infill drilling designed to substantiate the grade and extent of the deposit.
Following this transaction, Wallbridge America Limited will own assets comprised of leases and prospecting permits covering approximately 850 hectares (2,050 acres) in the Duluth Complex. The Duluth Complex hosts over four billion tonnes of copper, nickel and PGM mineralization and is one of the largest known undeveloped mineral resources in the world.
About the Companies
Wallbridge Mining Company Limited was established to explore for and develop nickel, copper and platinum group element deposits. The Company's principal properties are located in the Sudbury Basin in Ontario. The Sudbury area hosts the world's largest concentration of nickel deposits and is currently the most active mining camp in North America. Wallbridge also has properties elsewhere in northern Ontario and Nova Scotia.
Wallbridge America Limited will be a company focused on exploration for and development of copper, nickel, and PGE resources in the Duluth Complex, located near Duluth, Minnesota. Wallbridge America Limited will own assets comprised of leases and prospecting permits covering approximately 850 hectares (2,050 acres) in the Duluth Complex.
FOR FURTHER INFORMATION please visit the Company's website at www.wallbridgemining.com, or contact:
Wallbridge Mining Company Limited
Alar Soever, President
Tel: (705) 682-9297
Cavalcanti Hume Funfer Inc., Investor Relations
Nick Kohlmann, Vice President
Tel: (416) 868-1079 ext. 222
This document may contain forward-looking statements relating to Wallbridge's operations or to the environment in which it operates. 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.