TORONTO (CP) -- The price tag of the deal, announced early Tuesday, is $1 million in cash or shares and a $3 million exploration spending commitment by Tangueray.
The properties include the Mesima Lake and the Verna Lake claims about 36 kilometres northeast of Kirkland Lake. Wallbridge said it will also work with Tanqueray to acquire other properties for the proposed joint venture.
"This agreement will see significant exploration dollars spent on these very attractive properties, while allowing Wallbridge to focus on our core Sudbury area properties," Wallbridge president Alar Soever said before stock markets opened.
"It is in keeping with our philosophy of pursuing an aggressive exploration strategy, while minimizing (share) dilution."
Tanqueray will be the operator of the joint venture, while Wallbridge will provide exploration services to the venture as required.
Under terms of the agreement, Tanqueray can earn a 50% interest in the properties by spending $3 million on exploration and paying $1 million in cash and Tanqueray shares, over a three year period.
Tanqueray, a junior miner based in Calgary, can raise its interest to 70% by spending another $3 million in exploration and $750,000 in cash or shares.
Wallbridge explores for and develops nickel, copper and platinum group deposits, with a focus on the Sudbury basin in northern Ontario.
(c) Canadian Press