Wallbridge spins out nickel assets to focus on gold

Wallbridge Mining (TSX: WM; US-OTC: WLBMF) is selling its nickel assets to Archer Exploration (CSE: RCHR)  in an all-share deal worth $53.6 million.

The company said it wants to focus on its core gold projects Fenelon and Martiniere, and is selling its Grasset and RUM projects in Quebec and its Sudbury and NW projects in Ontario.

Under the deal, Wallbridge will receive about 198.6 million common shares of Archer and will own 19.9% of the company. Archer will grant Wallbridge a 2% royalty on the Grasset property and Wallbridge will have the right to nominate two directors to Archer’s board.

The two companies will also enter into an agreement to explore the Grasset property. If the results from either Wallbridge or Archer’s exploration work establish a mineral resource that consists of primary gold mineralization, then the companies will form a joint venture with Walbridge having a 70% interest, otherwise, Archer will own 70% of the venture.