Wallbridge Signs Option Agreement with Kirkland Lake Gold on Detour East Property

TORONTO, Nov. 23, 2020 (GLOBE NEWSWIRE) -- Wallbridge Mining Company Limited (TSX:WM) (“Wallbridge” or the “Company”) today announced that it has entered into an option agreement (the “Option Agreement”) with respect to its Detour East gold property (“Detour East” or the “Property”) with Kirkland Lake Gold Inc. (“Kirkland”), a wholly owned subsidiary of Kirkland Lake Gold Ltd. (TSX:KL). Under terms of the Option Agreement, Kirkland can earn a 75% interest in Detour East by making expenditures totalling $35 million on the Property, as described below and in the Company’s news release of September 14, 2020.

Under the terms of the Option Agreement, Wallbridge will grant Kirkland the option to acquire up to an undivided 50% interest in the Property by funding phase 1 expenditures of $7.5 million over five (5) years (the “Phase 1 Expenditures”) with a minimum commitment of $2.0 million in the first two years ($0.5 million by the first anniversary and $1.5 million by the second anniversary of entering into the Option Agreement (the “Option”). During the Option period, Kirkland shall have the right to act as operator of the Property.

Upon satisfaction of the Option, Wallbridge and Kirkland shall form a joint venture (the “Joint Venture”) on Detour East with Kirkland acting as the operator of the Joint Venture (the “Operator”) to carry on operations with respect to the Property.

Upon the formation of the Joint Venture, Kirkland will hold the right to acquire an additional 25% interest in the Property by incurring additional expenditures of $27.5 million within the first five (5) years of the formation of the Joint Venture (“Second Stage Option Period”).

Upon Kirkland having incurred additional expenditures of $27.5 million during the Second Stage Option Period, Kirkland shall have earned an undivided 75% interest in the Property. The deemed expenditures on the property shall be Kirkland ($35,000,000) and Wallbridge ($11,666,667). Following the completion of the Second Stage Option Period, any additional funds required will be contributed by the Joint Venture parties based on their then proportional Joint Venture interests. Should either Wallbridge or Kirkland (each a “Party” and collectively the “Parties”) elect not to fund a program, its Joint Venture interest will be diluted pro-rata. If a Party commits to fund a program, and fails to contribute its share of the funding, that Party’s Joint Venture interest will be diluted at three times the pro-rata rate.