The Sudbury Star is the City of Greater Sudbury’s daily newspaper.
Lively-based Wallbridge Mining Company Limited announced Tuesday it has secured financing to help develop its promising Broken Hammer Project, located north of Capreol.
The company said Callinan Royalties has agreed to provide Wallbridge with a line of credit for $2 million. In addition, Callinan will purchase 8,333,333 units of Wallbridge, at a price of $0.18 per unit, for gross proceeds of $1.5 million, subject to the approval of the Toronto Stock Exchange.
“We are pleased to have entered into this transaction with Callinan, a reputable royalty firm, for two reasons,” Marz Kord, president and CEO of Wallbridge, said in a release. “First, this new capital injection allows Wallbridge to accelerate the development plans for the Broken Hammer Project without significant equity dilution.
“Secondly, Callinan’s interest in financing the corporation at a premium to the current market in return for the option to purchase royalties on our 100%-owned Sudbury properties underscores the inherent value in these exploration assets, as well as broadening our already strong shareholder base.
“The investment by Callinan reaffirms our position that not only does Wallbridge have significant core assets in our investments in Duluth Metals and Miocene Metals, but that there is significant value in our Sudbury exploration assets, which to date has not been reflected in our market capitalization.”
For the rest of this article, please go to the Sudbury Star website: http://www.thesudburystar.com/2012/11/21/financing-in-place-for-broken-hammer-project-says-miner