Wallbridge Mining (TSX: WM, US-OTC: WLBMF) has completed the sale of all its nickel assets — namely the Grasset and RUM projects in Quebec and Sudbury and NW projects in Ontario — to Vancouver’s Archer Exploration (CSE: RCHR).
As consideration, Wallbridge has received 66.2 million common shares of Archer with a total deemed value of approximately $53.6 million. It will also retain a 2% net smelter royalty on production from the Grasset project.
Archer is a nickel-copper-PGE focused explorer with the aim of becoming a responsible nickel sulphide developer in Eastern Canada. The newly acquired Grasset project, located within the Abitibi greenstone belt about 55 km west-northwest of Matagami, Que., would serve as its flagship and core asset. It also holds 37 properties covering 309 sq. km within the Sudbury mining district.
Commenting on the nickel divestment, Wallbridge president and CEO Marz Kord said: “The transaction is in line with Wallbridge’s strategy of moving forward as a pure-play gold company focused on its core Detour-Fenelon gold trend properties.
“Archer is a focused exploration and development company which we believe has the management group and funding in place to deliver long-term value for our shareholders.”
The company is expected to distribute approximately 48.2 million of the acquired Archer shares shareholders on a pro rata basis, and will retain the remaining 18 million shares representing approximately 19.9% of Archer’s outstanding share capital.
In July 2022, Wallbridge announced that it would be selling its portfolio of nickel projects to Archer to focus on its core gold mining assets, which consist of the 100%-owned Fenelon and Martiniere properties located Quebec’s Northern Abitibi region.
Fenelon hosts an indicated resource of 2.1 million oz. gold in 36 million tonnes grading 1.84 grams gold per tonne, plus 1.5 million inferred oz. gold in 29 million tonnes grading 1.57 grams gold. Martiniere hosts 543,700 indicated oz. in 7.5 million tonnes grading 2.24 grams gold plus 256,200 inferred oz. in 2.8 million tonnes grading 2.87 grams gold. Both properties are located within a 910 sq. km land package along the Detour-Fenelon gold trend.
Shares of Wallbridge Mining jumped 5.4% by noon in Toronto following the completion of its nickel asset sale. The company has a market capitalization of $167.5 million.