Wallbridge to Receive Joint Venture Funding Up to $11 million for Parkin Properties

Wallbridge Mining Company (TSX:WM,OTCMKTS:WLBMF) announced that it has entered into an agreement with Lonmin Canada Inc. and Lonmin Plc to amend the existing North Range joint venture agreement. The changes to the agreement would allow Lonmin to earn up to 50 percent initial interest in Wallbridge’s four Parkin properties by making payments and funding aggregate expenditures of up to C$11 million over a four year period.
As quoted in the press release:

Under the terms of the Parkin Amendment, Lonmin may earn a vested Initial Interest of 50% of Wallbridge’s interest in all of the Parkin Properties by funding aggregate Exploration Costs and Development Costs on the Parkin Properties totalling up to CAD $11.083 million on or before September 30, 2019, which also includes reimbursing Wallbridge for its cash payments pursuant to Wallbridge’s option to purchase Impala Platinum Holdings Limited’s (“Implats”) interest in the Parkin Properties.
Upon vesting, Lonmin will have the option to earn up to an additional 15% interest in each property by committing to fund them through to a definitive feasibility study.
The first exploration program on the Parkin Properties will include expenditures of CAD $2.0 million and is scheduled to start October 1st, 2015, the beginning of Lonmin’s fiscal year. The program will include drilling to test the potential extension of the near-surface resource and the extent of higher grade PGM zones within the mineral envelope.

Marz Kord, president and CEO of Wallbridge, commented:

Our business plan, as outlined in the company presentation available on our website, focuses on acquiring value-accretive near-term production opportunities as well as advancing our exploration properties, including our Parkin Properties, through joint venture partnerships. I am pleased that we have not only advanced our discussions regarding some external assets but have now amended the NRJV with Lonmin to include our Parkin Properties. This plan provides the Company with sustainable cash flow while maintaining active exploration for large-scale discovery upside in the Sudbury camp. Our recent option agreement with Implats to purchase their portion of the project, the positive results of the drilling program in the first quarter of this year, and the recent mechanical stripping attracted a number of potential joint venture partners for our Parkin Properties and ultimately resulted in securing this agreement with Lonmin.

Click here to read the full Wallbridge Mining Company (TSX:WM,OTCMKTS:WLBMF) press release.