Agnico Eagle Takes 19.9% Wallbridge Stake in C$56 Million Deal

Agnico Eagle and Waratah will each take about a 19.9 per cent stake in Wallbridge Mining after committing C$22.4 million and C$33.5 million, respectively. The agnico eagle-backed financing prices the shares at C$0.092 apiece and gives Wallbridge the capital to push Fenelon toward a pre-feasibility study. For shareholders, the deal brings two cornerstone investors into a junior gold name that is still far below its 2021 level.

Fenelon Gets C$56 Million

C$56 million is the size of the financing Wallbridge said it has lined up for Fenelon, its advanced exploration-stage asset in Quebec. The company said the funding is expected to fully cover a pre-feasibility study, with work tied to infill drilling and a development path that Wallbridge expects to extend into late 2027 or early 2028.

1.75 million ounces of gold indicated and 1.65 million ounces inferred sit on the property, according to Wallbridge. Those resources make Fenelon the centerpiece of the transaction, because the new money is being directed at turning a large exploration inventory into a more defined project.

Wallbridge Rights For Investors

At closing, Agnico Eagle and Waratah will enter into an investor rights agreement with Wallbridge. That agreement gives them participation rights, top-up rights and the right to appoint at least one member to Wallbridge’s board of directors, while Agnico Eagle also gets a seat on a technical committee that will advise the company along its development path.

19.9 per cent is just below the ownership line that can trigger stronger control protections, so the structure matters as much as the cheque size. Wallbridge also said the investors are coming in at C$0.092 per common share, a price that sets the financing terms for existing holders.

Wallbridge Stock At C$0.095

C$0.095 was where Wallbridge stock traded at 10:05 am ET, up 26.67 per cent on the day. Even after that move, the shares remained down 85.38 per cent since 2021, showing how far the stock has fallen despite a 90 per cent year-over-year gain.

Brian Penny, Wallbridge’s chief executive, said the investments underscore the quality and scale of Fenelon and provide capital to advance it through infill drilling and a pre-feasibility study. “We are delighted to announce these cornerstone investments from our long-time shareholder Agnico Eagle and by Waratah, who we welcome as a significant new shareholder in the company,” he said.

Wallbridge is also planning a special shareholder meeting to authorize a 20:1 share consolidation and change its name to Sunday Lake Gold. A circular on that proposal will be made available in the near future, leaving shareholders with a financing, a board-rights package and a pending corporate reset all moving at once.

“With this capital injection from our cornerstone investors,” Penny said, “we will be well-positioned to advance Fenelon and unlock significant value for all shareholders as we enter this important new phase in the company’s history.”