Wallbridge to operate Sibanye’s Loncan operations in Canada
Precious metals miner Sibanye-Stillwater has made TSX-listed Wallbridge Mining the operator and manager of its Lonmin Canada (Loncan) business, which owns the advanced-stage Denison property, in Sudbury, Ontario.
Wallbridge earned a 20% interest in Loncan and has a seat on Loncan’s board of directors.
Wallbridge president and CEO Marz Kord said on Tuesday that the agreement dovetailed with the company's strategy of separating its gold and base metal assets, with work on the Sudbury-area properties to be funded entirely within privately-held Loncan.
“Distinct operating teams will advance development of our Fenelon gold property and will work to unlock the value of our copper/nickel/platinum group metal (PGM) assets separately,” he said.
Wallbridge’s existing, dedicated, Sudbury-based team would continue their work of generating value from the copper/nickel/PGM assets with resources independent of those driving our gold strategy.
Francois Demers, VP for mining and projects, has been appointed to lead all Wallbridge matters as they relate to Loncan, in addition to Wallbridge's existing joint venture (JV) agreements with Lonmin.
Besides the existing JV agreements with Wallbridge, Loncan owns 100% mining interest in the Denison property, which was previously part of Loncan's Sudbury PGM JV agreement with Vale Canada.
The Denison property includes the historic 4 000-ft Crean Hill mine shaft and underground infrastructure. More than 16-million tonnes of ore grading 1.22% nickel, 1.11% copper, 1.92 g/t TPM (platinum, palladium and gold) and 5.04 g/t silver was produced from the underground mine, as well as one-million tonnes, grading 0.73% nickel, 0.56% copper and 0.025% cobalt was produced from the openpit.
Operations at the Crean Hill mine were suspended in the early 2000s.
Wallbridge would receive compensation in the form of cash and/or shares of Loncan and additional compensation for milestones achieved in the development of projects.
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