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Wallbridge Mining Company Ltd
Symbol WM
Shares Issued 445,353,874
Close 2019-08-01 C$ 0.425
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Wallbridge closes $9.63M first tranche of placement

2019-08-01 18:45 ET - News Release

Mr. Marz Kord reports

WALLBRIDGE ANNOUNCES FIRST TRANCHE CLOSING OF $9.58 MILLION PRIVATE PLACEMENT

Wallbridge Mining Company Ltd. has closed the first tranche of a non-brokered private placement through the issuance of 2.59 million common shares in the company on a flow-through basis to Quebec resident investors (super FT shares) at a price of 50 cents per super FT share; 6,027,717 common shares in the capital of the company on a flow-through basis (national FT shares) at a price of 46 cents per national FT share; and 13,261,170 units at a price of 42 cents per unit for aggregate gross proceeds of $9,637,441. Each unit consists of one common share of the company and one-half common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share for a period of 12 months from the date of issuance at an exercise price of 60 cents per warrant share. The company expects to close a second and final tranche for anticipated proceeds of $576,000 on or about Aug. 2, 2019.

Collectively, the super FT shares and national FT shares are the offered securities. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, purchased $2.1-million of the units.

The gross proceeds from the issuance of the offered securities will be used for Canadian exploration expenses, as defined in the Income Tax Act (Canada), on the company's Fenelon property. The super FT shares will qualify for the two 10-per-cent enhancements under Section 726.4.9 and Section 726.4.17.1 of the Quebec Taxation Act, which will be renounced with an effective date no later than Dec. 31, 2019, to the initial purchasers of the offered securities in an aggregate amount not less than the gross proceeds raised.

In connection with the first tranche, the company paid a cash finder's fee of $217,805. All securities issued under the offering will be subject to a four-month hold period from the date of issuance in accordance with applicable securities laws. The offering is subject to final acceptance of the Toronto Stock Exchange.

"We are quite pleased with the support of our new and existing investors, which allowed us to complete this financing over a short time period," stated Marz Kord, president and chief executive officer of Wallbridge Mining. "We now have the ability to not only expand the ongoing 60,000-metre 2019 drilling program but also have a good portion of our 2020 planned exploration spending in the treasury."

The offering constituted a related-party transaction within the meaning of Multilateral Instrument 61-101 as Mr. Sprott, a reporting insider of the company, subscribed for five million units pursuant to the offering. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the offering by Mr. Sprott does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related-party transaction at least 21 days before the closing of the offering, which the company deems reasonable in the circumstances to complete the offering in an expeditious manner.

About Wallbridge Mining Company Ltd.

Wallbridge is establishing a pipeline of projects that will support sustainable production and revenue, as well as organic growth through exploration and scalability.

Wallbridge is currently developing its 100-per-cent-owned high-grade Fenelon gold property in Quebec with continuing exploration and a recently completed 35,000-tonne bulk sample. Wallbridge is also pursuing additional advanced-stage projects which would add to the company's near-term project pipeline. Wallbridge is also continuing partner-financed exploration on its large portfolio of nickel, copper and platinum group metal projects in Sudbury, Ont., with a focus on its high-grade Parkin project.

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