Wallbridge well-funded to explore expanded Fenelon

Raises C$63.8M, chases multi-million ounce potential

Staff reporter
 Wallbridge Mining raises more to explore Fenelon further in Quebec

Wallbridge Mining raises more to explore Fenelon further in Quebec

Wallbridge had announced the $56 million financing in mid-September, priced at $1.15 per share, to continue to advance Fenelon and for general corporate purposes.

It said on Friday Kirkland Lake Gold had acquired 20 million of the shares on offer to increase its ownership interest to 9.9% on a non-diluted basis, in accordance with non-dilution rights granted in December.

The pair recently entered a non-binding term sheet for Kirkland to earn up to 75% of Wallbridge's Detour East property.

The project is about 20km from Kirkland's Detour Lake mine it had acquired in January, and "at the far west end" of Wallbridge's enlarged Fenelon land package.

Wallbridge had expanded Fenelon through the acquisition of Balmoral Resources in May.

It had acquired its original Fenelon property from Balmoral in 2016.

The company said last month initial drilling on the newly-acquired ground had "greatly expanded the ultimate size potential" of the Fenelon gold system.

"[Results] dictate that we need to consider a significant increase and acceleration of our drilling programme to define the full potential of what is rapidly becoming a very large system with multi-million ounce resource potential," president and CEO Marz Kord said at the time.

The company is aiming to become a 100,000 ounce-plus annual gold producer.

Wallbridge shares (TSX: WM), which were worth about 34c a year ago, peaked at $1.35 in May.

They closed down 3.8% to $1.02 on Friday to capitalise it at $797 million (US$600 million).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.


Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across...


Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on quarterly mining...


Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices...


Mining Journal Intelligence Project Pipeline Handbook 2023

View our 50 top-ranked mining projects, handpicked...