Press ReleasesOctober 04, 2005
Wallbridge Announces Record Date for Special Warrant Dividend for Wallbridge America Limited
Toronto, Ontario - October 4, 2005 - Wallbridge Mining Company Limited (TSX: WM) today announced the record date of November 15, 2005 for issuance of a special warrant dividend to shareholders of record on that date. On November 15, 2005 the Company will distribute to its shareholders, special warrants of Wallbridge America Limited ("WAL"), a new company that will acquire all of Wallbridge's Minnesota exploration assets. Currently, Wallbridge's principal Minnesota exploration asset is the Maturi Extension deposit, located in the Duluth Complex in northeastern Minnesota. The Toronto Stock Exchange has conditionally accepted notice of the dividend-in-kind of the special warrants.
Under the terms of the plan, Wallbridge as founder of Wallbridge America Limited will receive 8,000,000 preference shares of Wallbridge America Limited ("WAL Preference Shares") convertible for no additional consideration into an equal number of WAL common shares for a 2 year period, and the shareholders of Wallbridge will receive a dividend in kind of one special warrant of WAL ("WAL Special Warrants") for every four shares of Wallbridge Mining Company Limited held as of November 15, 2005. Following this transaction, WAL 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 2,000,000 WAL Preference Shares in exchange for the earlier proposed NSR.
"We are very excited and pleased to be able to deliver real value to our existing Wallbridge shareholders by way of this new initiative," said Doug Hunter, VP Exploration.
Upon WAL completing a financing of at least $3,000,000, becoming a public company and obtaining a listing on a recognized stock exchange, each WAL Special Warrant will automatically convert into one common share of Wallbridge America Limited. In the event that WAL does not complete the financing and listing within 9 months of the special warrant distribution date, the WAL Special Warrants will expire and WAL will remain a wholly-owned subsidiary of Wallbridge Mining Company Limited.
Following the successful completion of this transaction, WAL will own assets comprised of leases and prospecting permits covering approximately 820 hectares (2,050 acres) in the Duluth Complex. The Duluth Complex hosts over four billion tonnes of copper, nickel and PGE mineralization and is one of the largest known undeveloped mineral resources in the world.
Immediate plans for WAL will be to complete a private placement financing, complete an initial public offering of its common shares and obtain a listing on the TSX Venture Exchange. The financing proceeds will be used to undertake an aggressive exploration program on the Minnesota Property. WAL's goal is to establish a mineral resource for development 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.
About the Companies
Wallbridge Mining Company Limited was established to explore for and develop nickel, copper and platinum group element (PGE) deposits. Apart from the Minnesota exploration assets, 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 the exploration and development of copper, nickel, and PGE mineralization in the Duluth Complex, located near Duluth, Minnesota. WAL will own assets comprised of leases and prospecting permits covering approximately 820 hectares (2,050 acres) in the Duluth Complex.
FOR FURTHER INFORMATION please visit the Wallbridge Mining website at www.wallbridgemining.com, or contact:
Wallbridge Mining Company Limited
Douglas Hunter, Vice President Exploration
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.