Long-time gold bull and well known Canadian billionaire investor Eric Sprott continues to show his confidence in Wallbridge Mining (TSX:WM), further adding to his position, according to a news release Monday morning by Wallbridge. Amongst other things, Toronto-based Wallbridge's is developing its high-grade Fenelon Gold property in Quebec with ongoing exploration and a 35,000-tonne bulk sample this year. The company is also developing a large portfolio of nickel, copper and PGM projects in Sudbury, Ontario, including its high-grade Parkin project. Elsewhere, Wallbridge has exposure to copper and gold in Jamaica and British Columbia through its minority ownership in Carube Copper (TSX-V:CUC).
As it moves towards production at Fenelon, Wallbridge said last month that it intersected 122.35 grams per tonne gold across 2.95 meters and 41.02 grams per tonne over 5.52 meters in the newly discovered Habanero zone at the project. Other highlighted recent discoveries from the property included assay results showing 36.71 g/t gold over 3.5 meters, 137.63 g/t gold over 4.85 meters and 204.0 g/t gold over 0.6 meters.
Through a private placement, Sprott has bought another 24.04 million shares of WM. The latest investment gives Sprott, who famously advised investors to buy gold ahead of the Great Recession, now owns and controls approximately 57.38 million common shares of WM and 16.67 million warrants of Wallbridge, representing 16.1% of the issued and outstanding shares of the company on a non-diluted basis and about 19.9% on a partially diluted basis (factoring in exercise of warrants). Ahead of the recent purchase, Sprott's holdings represented 9.4% of the issued and outstanding WM stock (non-diluted basis) and 13.4% (partially diluted basis).
Less than a month earlier, Sprott had made a $3.9 million investment in Wallbridge when he bought 30 million shares at 13 cents each in a non-brokered private placement.
Shares of WM were trading as low at 5.5 cents in June and have been running since, including printing a 52-week high of 35 cents on September 25. After pulling back to a low of 19 cents on Friday, the stock has been invigorated again by Sprott's purchase, carrying shares up 27.3% to 28 cents through early afternoon trading on Monday.