Business
Wallbridge Secures US $1.5 Million Bridge Loan Facility and Purchase Contract for its Broken Hammer Production
TORONTO , Aug. 26, 2014 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) (...
About this update from Wallbridge Mining Co. Ltd.
[{"type":"text","content":"\n\nTORONTO, Aug. 26, 2014 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) (\"Wallbridge\") is pleased to announce that it has secured a US $1.5 million bridge loan (the \"Bridge Loan\") from Auramet International LLC (\"Auramet\").  This funding will provide Wallbridge with additional working capital during the current start-up phase of the Broken Hammer project, and will bridge the period until sufficient revenue is received to achieve payback of the costs required to bring Broken Hammer into production and realize upon its revenue potential.  \n\nTo date concentrate with a net payable metal value of approximately US $1.3 M at current metal prices has already been shipped to smelters for final processing.  Payment will be received in the coming months as provided for under the smelting agreements. \n\nPursuant to the terms of the Bridge Loan, Auramet advanced US $1,250,000 to Wallbridge on closing and Wallbridge is required to pay US $1,500,000 on maturity of the loan in satisfaction of all interest and other costs associated with this facility.  In consideration of the Bridge Loan, Wallbridge has also granted Auramet 600,000 share purchase warrants of Wallbridge with an exercise price of CAD$0.15 per warrant share and which expire on August 20, 2016. \n\nThe Bridge Loan will mature on May 31, 2015 and any equity or debt proceeds received by Wallbridge until such date will be used towards retiring this debt.  The Bridge Loan is secured by one of Wallbridge's prime assets: its Duluth Metals shares and other personal property of Wallbridge which was not otherwise encumbered. \n\nWallbridge also recently signed an agreement with Auramet whereby Auramet agreed to take up all of Wallbridge's precious metal content in the gravity concentrate produced from the Broken Hammer mine. \n\nCommenting on these developments, Marz Kord, President and CEO of Wallbridge stated, \"This loan will allow Wallbridge to comfortably meet its working capital requirements during a critical phase of Wallbridge's Broken Hammer production efforts.  We are encouraged by Auramet's continued and strong commitment to Wallbridge and the Broken Hammer project as evidenced by its purchase agreement and now through Auramet's financing support.\"  \n\nAbout Wallbridge Mining\n\nWallbridge Mining Company Limited (WM:T...