Under the all-stock transaction, Balmoral shares will be exchanged at a ratio of 0.71 per Wallbridge share, implying a value of 62c per Balmoral share and a 46% premium to the volume weighted average price for the 20 days to February 28.

Major shareholder Eric Sprott, who holds about 9% of Balmoral and 23% of Wallbridge, has announced his support for the deal.

Wallbridge said the combination would create a "formidable and well-financed" exploration and development company with a dominant position on Quebec's Detour gold trend.

It said the combined entity would have a pro forma cash balance of about C$67 million to advance combined assets and pursue further growth opportunities.

Balmoral's flagship project is the Detour Gold Trend property which hosts the Bug and Martiniere West gold deposits and the Grasset nickel-copper-cobalt-PGE deposit.

Balmoral last year intercepted significant gold in phase two drilling at Area 52 at Detour Gold Trend, next to Wallbridge's Area 51 gold discovery at its flagship Fenelon property.

Wallbridge is progressing Fenelon and is also the operator of Loncan Canada which has a portfolio of nickel, copper and PGM projects in Ontario's Sudbury basin.

The company was aiming for a 100,000 ounce per annum production profile at Fenelon, Wallbridge's VP for exploration Atilla Péntek told a pre-PDAC event in Toronto days ago, referring to "organic growth optionality".

Wallbridge had raised C$42.5 million (US$32 million) in November at 57c per share to advance Fenelon and gained a further $7.9 million in a December placement at $1.05 per super flow-through share and 95c per national flow-through share.

Wallbridge shares rose 11.4% yesterday to close at 78c, near the upper end of a one-year range of 27-99c, putting its value about $458 million (US$343 million).

Balmoral shares jumped to a 52-week high of 52c on the news.

They closed up 53% to 47.5c to capitalise it about $85 million (US$64 million).