Wallbridge raising $17M for continued work at Fenelon

With potential to further advance the Fenelon gold project in Quebec, Wallbridge Mining Company (TSX:WM) has announced a bought deal financing worth $17.4 million. Proceeds are to be used exploration at the property this year.

Core from the Tabasco zone of the Fenelon project grading 22.73 grams gold per tonne uncut from hole FA-19-086. Credit: Wallbridge Mining Company.

The company is issuing 18.3 million flow-through shares at a price of $0.95 each for gross proceeds of $17.4 million. The offering is underwritten by a syndicate led by BMO Capital Markets. Kirkland Lake Gold will purchase back-end shares in order to maintain its existing 9.9% ownership of Wallbridge.

The Toronto-based company completed 102,000 metres of drilling in 2020. This year’s plan calls for an additional 170,000 metres of drilling and 4,800 metres of a 10,000-metre underground development program, both of which are fully funded. A maiden resource estimate is due in the third quarter 2021.

The Fenelon deposit is located 1 km north of the Sunday Lake deformation zone, the same zone that hosts the Detour Lake gold mine. The gold mineralization thus far defined is structurally controlled and affected by ductile deformation. The mineralization shares similarities with orogenic gold deposits in terms of metal associations, wall rock alteration assemblages and structural controls, according to Wallbridge.