Good news for Wallbridge Mining (WM.TO) as the company has announced its joint venture partner LonMin (LON:LMI) has decided to continue its contributions to fund ongoing exploration activities and cash option payments. LonMin will spend $1.5M on the ground on the Wisner property and make a $1M cash option payment to Wallbridge. On top of that, another million will be spent on the North Range property as well as $2M at Sudbury Camp.
As Wallbridge’s market capitalization is just C$8.4M, this deal with LonMin is of vital importance for the firm as it can continue its exploration efforts by putting someone else’s money at work. Additionally, the cash payments will help the company to manage its overhead costs. On top of that, Wallbridge will very likely cash in C$4.5M if Duluth Metals (DM.TO) effectively gets sold to Antofagasta (LON:ANTO) for C$0.45 per share in cash.
Disclosure: The author holds no position in Wallbridge nor LonMin. Please see our disclaimer for current positions.