Balmoral, Wallbridge merger nears completion

14th May 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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TSX-listed Balmoral Resources has obtained a final order from the Supreme Court of British Columbia, which approved its plan of arrangement with Wallbridge Mining.

Wallbridge has agreed to acquire all the issued and outstanding shares of Balmoral in exchange for 0.71 of its owns shares for each Balmoral share.

It is expected that the transaction will close on May 22, effectively delisting Balmoral from the TSX from May 25.

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

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.

This represents a 46% premium to the VWAP of Balmoral common shares on the TSX over that period and implies an equity value of the transaction equal to C$110-million.

Balmoral is a multi-award winning Canada-focused exploration company actively exploring a portfolio of gold and base metal properties located within the prolific Abitibi greenstone belt.

Wallbridge is establishing a pipeline of projects that will support sustainable 100 000 oz-plus yearly gold production, as well as organic growth through exploration and scalability.

The company is currently developing its 100%-owned Fenelon Gold property, which is located proximal to the Sunday Lake Deformation Zone, an emerging gold belt in north-western Quebec with an ongoing 100 000 m to 120 000 m exploration drill programme in 2020 and a 33 500-t bulk sample and 75 000 m of drilling completed in 2019.

Wallbridge is also pursuing additional advanced-stage projects, which would add to the company’s near-term project pipeline.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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