Wallbridge Mining to Buy Balmoral Resources: PDAC 2020 Breaking News

Wallbridge Mining Company Limited (TSX:WM) will acquire Balmoral Resources Ltd. (TSX:BAR) in an all-stock transaction valued at C$110 million

SmallCapPower | March 2, 2020: Wallbridge Mining Company Limited (TSX:WM) Monday announced that it has agreed to acquire Balmoral Resources Ltd. (TSX:BAR) in an all-stock transaction valued at approximately C$110 million. Balmoral shareholders will receive 0.71 of a Wallbridge share for each Balmoral common share held. Shares of Balmoral Resources surged 40% to $0.435 on the news.

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For Wallbridge, it significantly expands its Fenelon land holdings (from 10.5 km2 to 739.0 km2), improving the Company’s potential for further discoveries in the district as well as additional mine development flexibility. The combined company will have a significant presence in the prolific Detour Gold Trend, where Kirkland Lake Gold has its Detour Lake gold mine. The deal will also create a company with a pro forma market cap of C$500M and C$67M in cash.

Eric Sprott, the largest shareholder of both companies, will own 20% of the combined company on a basic basis and 20% on a fully-diluted basis. Kirkland Lake Gold will own 8% of the combined entity.

Balmoral’s Martiniere Property hosts two known gold deposits (Martiniere West and Bug), with a 2018 resource estimate suggesting that the Property contains a total of 591,000 ounces of gold in the Indicated category with a further 53,000 ounces in the Inferred category.

Wallbridge’s Area 51 and Tabasco discoveries have produced drill results that included 27.00 g/t gold over 38.39 metres.

Wallbridge Mining’s Fenelon Gold Property in Quebec could commence production later this year.

There is a transaction termination fee of C$2.5 million payable by Balmoral to Wallbridge.