Press ReleasesJune 06, 2007
Lonmin Plc Makes Private Placement in Wallbridge Mining
Toronto, Ontario -- June 6, 2007 -- Wallbridge Mining Company Limited (TSX:WM; FWB:WC7) today announced that it had entered into an agreement (which is subject to approval of the TSX) with global platinum producer Lonmin Plc ("Lonmin") whereby Lonmin will purchase 10,800,000 units ("Units") of Wallbridge at a price of C$0.60 per Unit. This represents a 25 to 30% premium to the recent trading price of Wallbridge shares. Wallbridge has the third largest land position in the highly active Sudbury Mining Camp.
"This investment by Lonmin is a big vote of confidence in our exploration work in Sudbury. The Sudbury Basin still remains one of the most attractive targets for a large-scale copper, nickel and platinum deposit," stated Alar Soever, President of Wallbridge. "This cements a relationship with Lonmin that we have had since January 2002, when they entered into the Sudbury Camp Joint Venture with us. They have been excellent joint venture partners, and now we welcome them as shareholders."
Each Unit is comprised of one common share in the capital of Wallbridge and one half common share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one common share in the capital of the Corporation at an exercise price of C$1.00 per Warrant for a period of three years from the date of issuance. Together the Units represent 18.19% of the fully diluted share capital of the Corporation (assuming exercise of all the Warrants).
Sixty percent of the proceeds will be used to advance exploration of Wallbridge's North Range properties where Wallbridge has found some new mineralized showings. Lonmin will have an option to enter into a Joint Venture on these properties, after this initial expenditure is completed. Lonmin will also have a right of first refusal on Wallbridge's other Sudbury area properties for a period of five years, subject to any existing underlying agreements with other parties. Currently Wallbridge is conducting a summer drilling, mapping and geophysics exploration program on the North Range properties, a strategic land package consisting of 35,422 hectares. Wallbridge has been a leader in advancing the exploration of footwall rocks in the Sudbury Igneous Complex by developing new and innovative ideas for this area.
About Wallbridge Mining
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, or contact:
Wallbridge Mining Company Limited
Alar Soever, President
Tel: (705) 682-9297
Email: [email protected]
Mara Strazdins, Vice-President, Investor Relations
Tel: (416) 369-1500, 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.