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TICKERS: BAR; BALMF, WM

Balmoral Resources to Be Acquired by Wallbridge Mining
News Update

Source:

Balmoral Resources is to be acquired in an all-stock transaction with an equity value of about CA$110 million.

Balmoral Resources Ltd. (BAR:TSX; BALMF:OTCQX) agreed to be acquired by Wallbridge Mining Co. Ltd. (WM:TSX) in an all-stock transaction, the two companies announced in a news release.

In the deal, Wallbridge will acquire all of Balmoral's issued and outstanding shares. Each Balmoral share will be exchanged for 0.71 of a Wallbridge share. The ratio implies the transaction has an equity value of CA$110 million.

The combined entity will have an enhanced capital markets profile and a pro forma cash balance of about CA$67 million, the release noted.

"The recent exploration success at Tabasco, Ripley and throughout Area 51 speak to a large gold system which we are just beginning to unlock and which is combined in its entirety through this transaction," Balmoral President and CEO Darin Wagner said in the release. "Today's announcement creates one of best funded exploration companies in Canada which has enjoyed tremendous support from Mr. Eric Sprott and a solid shareholder base which includes gold producer Kirkland Lake Gold who operate along the Detour Gold Trend."

After the transaction closes, Wallbridge shareholders will own 82% of the combined company's total shares, and Balmoral shareholders will own 18%.

Along with a 46% premium, the acquisition also affords Balmoral shareholders exposure to Wallbridge's existing Fenelon property, the potential upside in Wallbridge shares and enhanced trading liquidity, the companies stated.

Marz Kord, president, CEO and director of Wallbridge, stated, "The combination of our two companies creates an entity with a solid balance sheet; a diverse yet focused project portfolio; a motivated management group experienced in exploration, development and production; and the scale, resource growth potential and discovery upside that gives us the opportunity to build on the strengths of both companies."

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