Press ReleasesMarch 31, 2006
Wallbridge and Lonmin Restructure Sudbury Camp Joint Venture; Commit to US$1.050 million Exploration Program
Toronto, Ontario -- March 31, 2006 -- Wallbridge Mining Company Limited (TSX: WM) announced today that it has signed an agreement with Lonmin Plc on an amendment to restructure its Sudbury Camp Joint Venture ("SCJV"), which presently covers 18 of Wallbridge's properties in Sudbury. The amendment reduces the number of properties in the Joint Venture to nine, and commits the partners to a US$1.050 million summer exploration program for the period from April 1, 2006 to September 30, 2006.
Under the terms of the amendment, the number of properties will be further reduced to six on September 30, 2006, and Lonmin will be required to commit to expenditures of at least US$1.0 million per year in order to earn its right to a 50% interest in any joint venture property at such time an Indicated Resource is declared.
The amendment also provides Wallbridge with the opportunity to fund expenditures in excess of Lonmin's minimum commitment up to Indicated Resource stage. Lonmin's interest will be reduced pro-rata to the extent that Wallbridge has contributed to the exploration program on a particular property, but Lonmin can buy back the Wallbridge interest when an Indicated Resource has been declared. For the current six month period, Lonmin is contributing funding of US$670,000, $170,000 above its minimum required expenditure, and Wallbridge is contributing $380,000. This degree of flexibility ensures maximum exploration progress to the benefit of both partners.
Lonmin and Wallbridge believe the proposed amendment will be beneficial to both parties as it allows Lonmin to focus on those properties having the potential to meet its objectives as a major platinum group metals producer, while providing Wallbridge with the opportunity to build shareholder value by advancing the other properties, either on its own, or in conjunction with other partners.
"This amendment epitomizes the excellent mutual relationship between Wallbridge and Lonmin Plc," stated Alar Soever, President of Wallbridge. "It realigns a very large land package, and allows us both to focus on achieving maximum benefit for our respective shareholders from our exploration efforts."
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 properties elsewhere in northern Ontario and Nova Scotia.
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
Email: [email protected]
Cavalcanti Hume Funfer Inc., Investor Relations
Nick Kohlmann, M.Sc.,Vice President
Tel: (416) 868-1079 ext. 222
Email: [email protected]
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.