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Wallbridge Mining Company Ltd T.WM

Alternate Symbol(s):  WLBMF

Wallbridge Mining Company Limited is a Canada-based company, which is engaged in the exploration and sustainable development of gold projects along the Detour-Fenelon Gold Trend in Quebec's Northern Abitibi region. The Company is focused on advancing its 100% owned Fenelon project and Martiniere project. The projects are situated within the Company's approximately 830 square kilometer (km2) Detour-Fenelon Gold Trend Property located in the Nord-du-Quebec administrative region approximately 75 kilometers (km) west-northwest of the town of Matagami, in the province of Quebec, Canada. Its Detour-Fenelon Gold Trend projects include Casault, Detour East, Grasset Gold, Harri and Doigt. The Company owns a 100% interest in the Nantel property. Its other gold assets include Hwy 810, Beschefer and N2 Property. The Grasset gold property is located immediately east of and adjoins the Fenelon property. The Company also holds approximately 15.8% interest in the common shares of NorthX Nickel Corp.


TSX:WM - Post by User

Post by goldhunter11on Apr 29, 2019 9:25am
187 Views
Post# 29682624

Sprott $7M PP for 30Ms @0.24/s

Sprott $7M PP for 30Ms @0.24/sJust to put some facts on the table:
- This PP is subject to shareholders' vote at the Special Meeting of 8 May 2019, hence it has not been passed or rejected. I have not checled to see who would be eligible to vote. Of course, not ES with his  current holding of ~20% holding, since this would be considered as a conflict of interest. But what about management and other insiders.
- According to the 20 Feb 2019 NR, ES has exercised 1.6M (@ $0.15) and 15M (@ $0.20) wts for $3.25M. The SP during the period 4 Jan 2019 to 13 Feb 2019 was from $0.16 to 0.235/s. The SP started to rise from 0.245 (15 Feb) to $0.27/s (22 Mar). So, the price of $0.24/s for a PP of 30Ms was not an unreasonable price, even for an insider, who is willing to have an additional $7M (~an additional 5% investment in WM).
In other words, given the background SP information, $0.24/s does not represnt a "sweetheart deal" for ES. The question is does WM need an extra $7M? The answer would be yes, since there is no wts (No further dilution) attached to the deal and $7.0M would would quite a bit of drilling for further development (say some 50,000m drill program).
- Dilution? Of course, there will be dilution, but the SP won't drop back to $0.24/s, since the run to the current $0.41/s was due to other factors, and the "news" about the PP has been digested by the market. IN exchange for $7M, WM will issue another 30Ms, so a dilution would be something like 0.41 x 390/420 = 0.38/s, ~8% drop in share price), ignoring the $7M coming in to WM treasury. If one takes that into account then the share price would be (theoretically assuming other factors remain constant) (160 +7)/420 = $0.397/s (not much different from 0.41/s, ~3% drop). This change is not really significant compared to the effect due to other factors, e.g. a positive NR from recent drilling, of the bulk sampling results, or an announcemnt that they will have another 50,000m drilling program from the $7M just raised from the PP, with the focus in increasing the strike zone beyond 400m and to increase the depth of area 51 (as examples).

I could be wrong, but the tea-leaf reading is saying that the PP would be approved at the Special Meeting, since the price of 0.24/s is reasonable for $7M coming in to the treasury. Note that ES has spent $3.25M for 16.67Ms (from his wt exercise @$0.15 to $0.20). Exercise your perogative.
GH11
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