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Wallbridge secures US$8m for bulk sampling

Wallbridge Mining (CN:WM) has secured US$8 million in a bridge loan to fund its 35,000 tonne bulk sample programme at its Fenelon Gold property in Quebec.
Wallbridge secures US$8m for bulk sampling Wallbridge secures US$8m for bulk sampling Wallbridge secures US$8m for bulk sampling Wallbridge secures US$8m for bulk sampling Wallbridge secures US$8m for bulk sampling

Gold equities lower

Staff reporter

The first draw on the bridge loan, with Auramet International, hinges on Wallbridge completing a minimum C$2 million equity raise.

Auramet has also been granted a call option on 6,000oz of gold struck at C$1,780/oz (US$1,381/oz) and Wallbridge has agreed to a gold purchase and sale agreement, whereby Auramet will buy 100% of the bulk sample gold production in 2018 and 2019 and the first year of commercial gold production.

Wallbridge said dewatering the pit and underground was 50% complete and the bulk sampling would focus on material grading 18g/t-25g/t within 125m of surface.

Wallbridge shares retreated to a 52-week low seen last May of C6.5c, having reached 14.5c in November.

Meanwhile, the gold price was around US$10 an ounce lower than this time yesterday at $1,340/oz, as markets settled as the end of the first quarter and the Easter break loom.

Larger gold equities were lower in Australian trade today, including Newcrest Mining (AU:NCM) which yesterday restarted mining at its Cadia operations following a tailings dam breach on March 9.

Finally, Canadian explorer NuLegacy (CN:NUG) also closed lower, down about 5% yesterday, after announcing late winter snow had dumped close to 1m of snow on parts of its Red Hill property in Nevada and delayed its planned drilling programme.