11:17 AM EST, 03/02/2020 (MT Newswires) -- Wallbridge Mining Company Limited (WM.TO) and Balmoral Resources Ltd. (BAR.TO) -- last week up more than 40% and nearer a 52 week high of $0.49 -- have entered into a definitive agreement following the signing of a LOI on February 14, 2020, whereby Wallbridge will, among other things, acquire all of the issued and outstanding shares of Balmoral, in an all-stock transaction, pursuant to a plan of arrangement.

All of the issued and outstanding shares of Balmoral will be exchanged at a ratio of 0.71 of a Wallbridge common share for each Balmoral common share. Upon completion of the transaction, existing Wallbridge and Balmoral shareholders will own approximately 82% and 18% of the company's pro forma issued and outstanding shares, respectively.

Among other things, the transaction will combine complementary, highly prospective properties located in Nord-du-Quebec region of western Quebec, creating opportunity for synergies given close proximity of the properties and significantly expands Wallbridge's Fenelon land holdings (from 10.5 km2 to 739.0 km2), improving the company's potential for further discoveries in the district as well as additional mine development flexibility.

"This strategic transaction makes sense for the shareholders of both Wallbridge and Balmoral," said Marz Kord, President, CEO & Director of Wallbridge. "The combination of our two companies creates an entity with a solid balance sheet; a diverse yet focused project portfolio; a motivated management group experienced in exploration, development and production; and the scale, resource growth potential and discovery upside that gives us the opportunity to build on the strengths of both companies."

Eric Sprott, who currently holds approximately 9% of Balmoral's common shares, has agreed to vote his Balmoral common shares in favour of the transaction.

Price: 0.43, Change: +0.12, Percent Change: +38.71