Wallbridge Signs Option Agreement with Kirkland Lake Gold on Detour East Property
WALLBRIDGE MINING COMPANY LIMITED TSX: WM www.wallbridgemining.com
129 Fielding Road Lively ON P3Y 1L7 t: 705‐682‐9297 f: 1‐888‐316‐4156 e [email protected]
Wallbridge Signs Option Agreement with Kirkland Lake Gold on Detour East Property
Toronto, Ontario – November 23, 2020 – Wallbridge Mining Compan y Limited (TSX:WM) (“Wallbridge” or the
“Company”) today announced that it has entered into an option agreement ( the “Option Agreement”) with respect to its
Detour East gold property (“ Detour East ” or the “ Property”) with Kirkland Lake Gold Inc. (“ Kirkland”), a wholly
owned subsidiary of Kirkland Lake Gold Ltd. (TSX:KL) . Under terms of the Option Ag reement, Kirkland can earn a
75% interest in Detour East by m aking expenditures totalling $3 5 million on the Property, as described below and in the
Company’s news release of September 14, 2020.
Under the terms of the Option Agreement, Wallbridge will grant Kirkland the option to acquire up to an undivided 50%
interest in the Property by funding phase 1 expenditures of $7. 5 million over five (5) years (the “ Phase 1 Expenditures”)
with a minimum commitment of $2.0 million in the first two year s ($0.5 million by the first anniversary and $1.5 million
by the second anniversary of enter ing into the Option Agreement ( t h e “Option”). During the Option period, Kirkland
shall have the right to act as operator of the Property.
Upon satisfaction of the Option, Wallbridge and Kirkland shall form a joint venture (the “ Joint Venture”) on Detour East
with Kirkland acting as the operator of the Joint Venture (the “Operator”) to carry on operations with respect to the
Property.
Upon the formation of the Joint Venture, Kirkland will hold the right to acquire an additional 25% interest in the Property
by incurring additional expenditures of $27.5 million within th e first five (5) years of the formation of the Joint Venture
(“Second Stage Option Period”).
Upon Kirkland having incurred additional expenditures of $27.5 million during the Second Stage Option Period, Kirkland
shall have earned an undivided 75% interest in the Property. Th e deemed expenditures on the property shall be Kirkland
($35,000,000) and Wallbridge ($11,666,667). Following the compl etion of the Second Stage Option Period, any
additional funds required will be contributed by the Joint Vent ure parties based on their then proportional Joint Venture
interests. Should either Wallbridge or Kirkland (each a “ Party” and collectively the “ Parties”) elect not to fund a
program, its Joint Venture interest will be diluted pro-rata. I f a Party commits to fund a program, and fails to contribute its
share of the funding, that Party’s Joint Venture interest will be diluted at three times the pro-rata rate.
If either Party’s Joint Venture interest is reduced to 5% or le ss, that Party’s Joint Venture interest shall be automatically
converted to a 1% net smelter return royalty (the “ NSR”) and the Joint Venture shall be automatically terminated. Th e
surviving Party shall have a right of first offer with respect to the purchase or sale of the NSR by the non-surviving party.
About Wallbridge Mining
Wallbridge is currently advancing the exploration and developme nt of its 100%-owned Fenelon Gold property, which is
located along the Detour-Fenelon Gold Trend, an emerging gold b elt in northwestern Québec. The Company is currently
completing its 100,000-metre exploration drill program in 2020 and has plans for a fully-funded +150,000-metre drill
program, as well as the commencement of a 10,000-metre underground development program in 2021.
The recent acquisition of Balmoral Resources has secured for Wa llbridge a buffer of several kilometres surrounding its
rapidly expanding Fenelon discove ry providing room for growth, as well as future mine development flexibility. This
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acquisition has also significantly expanded Wallbridge's land h oldings in Québec along the Detour-Fenelon Gold Trend
(from 10.5 km2 to over 900.0 km2), improving Wallbridge's potential for further discoveries for over 90-kilometre strike in
this under-explored belt.
Wallbridge is also the operator of, and a shareholder in, Lonmin Canada Inc., a privately-held company with a large
portfolio of nickel, copper, and platinum-group metals (PGM) projects in Ontario's Sudbury Basin.
This news release has been authorized by the undersigned on behalf of Wallbridge Mining Company Limited.
For further information please visit the Company's website at www.wallbridgemining.com or contact:
Wallbridge Mining Company Limited
Marz Kord, P. Eng., M. Sc., MBA
President & CEO
Tel: (705) 682-9297 ext. 251
Email: [email protected]
Victoria Vargas, B.Sc. (Hon.) Economics, MBA
Investor Relations Advisor
Email: [email protected]
This press release may contain certain “forward-looking statements” within the meaning of applicable Canadian
securities legislation relatin g to, among other things, the operations of Wallbridge Mining Company Limited
(“Wallbridge” or “Company”) and the environment within whic h it operates. All statements , other than statements of
historical fact, included herein, including, without limita tion, statements regarding future plans and objectives of
Wallbridge, future opportunities and anticipated goals, the company’s portfolio, treasury, management team, timetable to
mineral resource estimation, permitting and the prospective mi neralization of the properties, are forward-looking
statements that involve various risks, assumptions, estimat es and uncertainties. Generally, forward-looking information
can be identified by the use of forward-looking terminology such as “seeks”, “believes ”, “anticipates”, “plans”,
“continues”, “budget”, “scheduled”, “estimates”, “exp ects”, “forecasts”, “intends”, “projects”, “predicts”,
“proposes”, "potential", “targets” and variations of such word s and phrases, or by statements that certain actions, events
or results “may”, “will”, “could”, “would”, “should” or “m ight”, “be taken”, “occur” or “be achieved”. There can be
no assurance that such statements will prove to be accurate, and actual results and future events could differ materially
from those anticipated in such statements.
By their nature, forward-looking statements involve numer ous assumptions, inherent risks and uncertainties, both general
and specific, that contribute to the possibility that the predicte d outcomes could differ materially from those contained in
such statements. These risks and uncertain ties include, but are not limited to, delays in obtaining or failures to obtain
required governmental, regulatory, environmental or other required approval, the actual results of current exploration
activities, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additional exploration
and development activities at the Company’s projects, capita l expenditures, the availability of any additional capital
required to advance projects, accidents, or pandemic interruptions.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,
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estimated or intended. These statements reflect the current in ternal projections, expectations or beliefs of the Company
and are based on information currently available to the Company.
The Company does not undertake to update any forward-look ing information, except in accordance with applicable
securities laws. The Company believes that the expectations reflected in those fo rward-looking statements are reasonable
but no assurance can be given that these expectations will pr ove to be correct and such forward-looking statements
included in this press release should not be unduly relied upon by investors as actual results may vary.
Risks and uncertainties about Wallbridge’s business are more fu lly discussed in the disclosu re material filed with the
securities regulatory authorities in Canada and available on SEDAR under the Company’s profile at www.sedar.com.
Readers are urged to read these materials and should not pl ace undue reliance on the forward-looking statements
contained in this press release.
Covid-19 - Given the rapidly evolving nature of the Cor onavirus (COVID-19) pandemic, Wallbridge is actively
monitoring the situation in order to continue to maintain as best as possible the activities while striving to protect the
health of its personnel. Wallbridge' activ ities will continue to align with the guida nce provided by local, provincial and
federal authorities in Canada. The company has establishe d measures to continue normal activities while protecting the
health of its employees and stakeholders. Depending on the evolution of the virus, measures may affect the regular
operations of Wallbridge and the participation of staff members in events inside or outside Canada.