Press ReleasesOctober 10, 2006
Wallbridge Special Warrants Convert to Duluth Metals Limited Shares following Duluth's Successful IPO
Toronto, Ontario -- October 10, 2006 -- Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) today advised its shareholders that any Special Warrants which they held will now automatically convert to freely trading shares of Duluth Metals Limited ("DM") (TSX:DM) with the successful completion of DM's Initial Public Offering ("IPO"). No action is required on the part of shareholders, as the conversion is automatically triggered by the completion of the IPO.
"We congratulate the DM team on their successful IPO", stated Alar Soever, President of Wallbridge. Their successful IPO in a difficult market environment demonstrates the merits of the DM project and has built tremendous value both in Wallbridge and for Wallbridge shareholders. We are pleased to see our strategy of spinning out our property interests in Minnesota into this vehicle has achieved success. We look forward to seeing this asset grow as Duluth Metals advances work on its Minnesota properties".
Wallbridge holds 10 million of the 45,182,483 million issued and outstanding shares of DM. Wallbridge shareholders hold another 11.8 million shares through the conversion of their Special Warrants.
DM successfully completed its listing and IPO and a Concurrent Private Placement, raising an aggregate of $11,493,482 and will today begin trading on the Toronto Stock Exchange under the symbol DM.
Proceeds from the IPO and Concurrent Private Placement will be used primarily to fund a two phase exploration program on the Duluth's Maturi Extension Property which hosts an extensive zone of copper-nickel-PGE mineralization within the Duluth Complex.
Drilling to date on the property has intersected this mineralization in widely spaced drill holes over a strike length of approximately 2.4 miles. A total of approximately 100,000 feet drilling is planned using up to four drills. Drilling is scheduled to start in October.
The objectives of the drilling are to define a resource in the Western Exploration Area and to define the limits of the mineralization in the Eastern Exploration Area which hosts some of the better grade intersections on the property and has largely not been drill tested.
The IPO consists of 12,949,250 units (the "Units"), each Unit consisting of one common share and one-half of one Class A share purchase warrant (the "Class A Warrants"), with each whole warrant (a "Warrant") exercisable into one common share. The Units have been issued pursuant to a prospectus dated September 13, 2006 (the "Prospectus") at a price of $0.80 each for total proceeds of $10,359,400. The Class A Warrants are exercisable at a price of $1.10 per Warrant at any time on or before September 30, 2008. D&D Securities Company and Union Securities Ltd. acted as co-agents on the IPO.
Concurrent with completion of its IPO, a private placement (the "Concurrent Private Placement") was completed consisting of 1,417,603 additional Units at a price of $0.80 each for total proceeds of $1,134,082.40. The Common Shares and Class A Warrants issued pursuant to the Concurrent Private Placement are subject to a four month plus one day hold period. Northland Securities, Inc. acted as agent on the Concurrent Private Placement.
The combined total raised by Duluth Metals Limited in the IPO and the Concurrent Private Placement is $11,493,482.40.
Wallbridge Mining Company Limited explores for and develops nickel, copper and platinum group element ("PGE") 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 a major shareholding in Duluth Metals Limited, which has a significant property position in the rapidly emerging Duluth Complex base metal camp in Minnesota.
For Further Information
Please visit the Company's website at www.wallbridgemining.com:
About Duluth Metals
Duluth Metals Limited was founded to acquire, explore and develop copper, nickel and platinum group element (PGE) deposits in North America. Duluth's principal property is the Maturi Extension Property located within the rapidly emerging Duluth mining camp in north-eastern Minnesota.
Wallbridge Mining Company Limited
Alar Soever, President
Tel: (705) 682-9297
CHF Investor Relations
Mara Strazdins, B.Sc.Geo., 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.