Wallbridge pockets $8m from Detour East sale to Agnico Eagle
Toronto-listed Wallbridge Mining Company has struck a deal with Agnico Eagle Mines to sell its Detour East property in Quebec for $8-million in cash, while retaining a 2% net smelter return (NSR) royalty.
The junior said on Thursday the sale would provide it with immediate liquidity and allow the company to sharpen its focus on the Detour-Fenelon Gold Trend property in Quebec’s northern Abitibi region.
Under the terms of the deal, Agnico Eagle has the option to buy back half of the royalty for $4-million. The claims were previously subject to an earn-in agreement between the two companies.
Wallbridge CEO Brian Penny said the transaction fitted neatly into the company’s broader strategy of concentrating on its two flagship assets – Fenelon and Martiniere.
“The sale of Detour East to Agnico strengthens our financial position and provides Wallbridge additional flexibility as we continue to advance our Detour-Fenelon Gold Trend Property,” Penny said.
“The 2% NSR on the property enables us to maintain exposure to Detour East’s potential and is consistent with our strategy of prioritizing our two core assets Fenelon and Martiniere.”
Wallbridge, which has been advancing a large land position along the Detour-Fenelon trend, has pitched Fenelon as a potential new gold camp in the Abitibi – one of the world’s most prolific gold-producing regions.
The junior miner is among several Canadian exploration players trimming their portfolios and bolstering balance sheets amid volatile capital markets, as investors show stronger preference for advanced projects with clearer development timelines.
Agnico Eagle, which already operates the nearby Detour Lake mine – Canada’s largest gold mine – will now fold Detour East into its regional exploration pipeline, consolidating its control over a stretch of ground seen as highly prospective for further discoveries.
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