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Wallbridge to buy Balmoral in all-stock deal

2nd March 2020

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Canadian companies Wallbridge Mining and Balmoral Resources on Monday announced their combination to form an exploration and development company with a dominant land position along the Detour gold trend in Quebec.

In terms of the definitive agreement, Wallbridge will acquire the issued and outstanding shares of Balmoral, in an all-stock transaction valued at about C$110-million.

Shares in Balmoral will be exchanged at a ratio of 0.71 of a Wallbridge common share for each Balmoral common share. The exchange ratio implies consideration of C$0.62 a Balmoral common share, based on the volume-weighted average price (VWAP) of Wallbridge common shares on the TSX for the 20 trading days ended February 28, 2020, representing a 46% premium to the VWAP price of Balmoral common shares on the TSX over that period.

Upon completion of the transaction, existing Wallbridge and Balmoral shareholders will own about 82% and 18% of the company's proforma issued and outstanding shares, respectively.

“Today's announcement creates one of best funded exploration companies in Canada which has enjoyed tremendous support from Mr. Eric Sprott and a solid shareholder base which includes gold producer Kirkland Lake Gold who operate along the Detour gold trend,” commented Balmoral CEO Darin Wagner.

Sprott owns about 23% of Wallbridge and 9% of Balmoral.                                       

The transaction significantly expands Wallbridge's Fenelon land holdings in Quebec (from 10.5 km2 to 739.0 km2) along the Detour gold trend, improving the company's potential for further discoveries in the district, as well as additional mine development flexibility.

In addition, Fenelon adds multiple gold-focused properties, including the resource stage Martiniere gold deposit, within the prolific Abitibi greenstone belt, that have exploration upside, and a resource nickel/copper/cobalt/platinum-group-elements project that has option value.

Edited by Creamer Media Reporter

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