Brian Penny, Chief Executive Officer of Wallbridge commented:
"We are delighted to announce these cornerstone investments from our long-time shareholder Agnico Eagle and by Waratah, who we welcome as a significant new shareholder in the Company.
In our view, these investments underscore the quality and scale of our flagship asset, Fenelon, while providing the capital required to advance it through infill drilling and a pre-feasibility study, which we expect to deliver in late 2027 or early 2028.
As part of this next chapter, we also intend to seek shareholder approval in due course to complete a 20:1 share consolidation and a renaming of the Company to Sunday Lake Gold.
With this capital injection from our cornerstone investors, we will be well positioned to advance Fenelon and unlock significant value for all shareholders as we enter this important new phase in the Company's history."
Key Highlights
Strategic investments will be made at a price of C$0.092 per common share, representing a premium of 15% to the Company's 20-day volume-weighted average price on the Toronto Stock Exchange.
The net proceeds of the offering, along with the Company's existing financial resources, is expected to fully fund completion of a pre-feasibility study on the Fenelon project.
Agnico Eagle and Waratah will each have, or exercise control or direction over, a 19.9% partially-diluted position in the Company (including the common shares and warrants that Agnico Eagle already owns).
The Company intends to seek shareholder approval for a name change to "Sunday Lake Gold" and a 20:1 share consolidation. Further information regarding such matters will be available in due course.
Additional Details
Agnico Eagle has agreed to purchase 243,927,966 common shares of the Company for gross proceeds of approximately C$22.4 million, which together with Agnico Eagle's existing ownership position of common shares and common share purchase warrants, will result in a partially-diluted ownership interest of 19.9% in the Company.
Waratah, on behalf of certain investment funds managed by it, agreed to purchase 364,339,130 common shares of the Company for gross proceeds of approximately C$33.5 million, which will result in such funds having an aggregate pro forma ownership interest of 19.9% in the Company.
In connection with the ...
