Soon-to-be acquired platinum miner Lomin has sold its interest in Canadian company Wallbridge to millionaire investor Eric Sprott for just under US$4 million.
Platinum miner Lonmin (LSE:LMI) has sold its 6.8-percent stake in Canadian junior Wallbridge Mining (TSX:WM, FWB:WC7) to Eric Sprott in a US$3.97-million deal, the company and the investor announced in a joint statement on Monday (October 1).
Lonmin, which is in the process of being acquired by Sibanye-Stillwater (NYSE:SBGL,JSE:SGL), has released its 24,042,895 shares in Wallbridge to Sprott, who will increase his stake in the company from approximately 9.4 percent to 16.1 percent.
“We are pleased to see the increased level of interest in our company as evidenced by the trading volume over the last few weeks. We are also encouraged by Mr. Sprott’s support, believing in our company and our Fenelon gold property,” stated Marz Kord, president and CEO of Wallbridge.
Sprott purchased the stake in Wallbridge for C$0.165 a share and his backing sent the company’s share price up by 25 percent on Monday to C$0.28 a share.
“We continue with our successful exploration and development plans at Fenelon gold property in order to expand the resource and move the project ahead into production,” Kord noted.
The Fenelon property is located near the Sunday Lake deformation zone in north-western Quebec.
On Tuesday (October 2), Wallbridge reported that it intersected 74.90 grams per tonne gold over 5.66 metres at the property and visible gold has now been observed in 41 of 68 holes drilled to date.
“Our exploration results continue to exceed expectations. We are particularly pleased with the results from the Habanero zone, a new zone which is producing good grades and widths,” stated Kord.
“We look forward to more good results from this zone as we still have several holes with visible gold with assays pending,” he added.
Additionally, there is a bulk sample program scheduled for the Fenlon property that is to take place before the year comes to an end. The bulk sample is expected to produce 19,000 to 26,000 ounces of gold with close to 50 percent of gold priced at C$1,720 per ounce.
As of 10:15 a.m. EST, Lonmin was down 1.37 percent, trading at GBX 43.32. Meanwhile, Wallbridge was up a substantial 12.73 percent, trading at C$0.31.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Wallbridge Mining is a client of the Investing News Network. This article is not paid-for content.