Sudbury's Wallbridge Mining Company Ltd. announced Thursday it has signed a tentative agreement with Falconbridge Ltd. involving a number of promising land claims in Greater Sudbury.
Under terms of a proposed restructuring, Wallbridge would acquire Falconbridge's 36 percent interest comprising the Broken Hammer Zone on the land claim commonly known as the Wisner Property and another claim called the Parkin Offset Property.
The restructuring involves six claims that will all become Wallbridge properties.
In return, Falconbridge will increase its interest to 50 percent in the claim recognized as the Frost Lake Property, as well as the remainder of the Wisner Property, excluding the six claims surrounding the Broken Hammer Zone.
Exploration on these properties will continue in a joint venture between Wallbridge and Falconbridge and a total of $1.9 million has been budgeted for work on these properties in 2006.
Falconbridge will also have the right to buy back up to 60 percent interest following any feasibility study in any deposit which contains in excess of $750 million of metals by incurring 200 percent of Wallbridge's total expenditures under the joint venture agreement.
Falconbridge also retains a right of first refusal on processing nickel ore from the mentioned property.
"We are very pleased to have reached this agreement with Falconbridge, which benefits both companies," said Alan Soever, president of Wallbridge, in a news release. "Securing the resources at Broken Hammer and Parkin allows us to explore a variety of scenarios for advancing these two properties.
"In return, Falconbridge gets the increased exposure to the excellent exploration potential at both Frost Lake and Wisner that is desired."
Wallbridge was established to explore and develop nickel, copper and platinum group deposits and most of its principal properties are located in the Sudbury basin.
