Liberty Gold Announces Closing of Royalty Transactions and US$5.7 Million Private Placement and Welcomes Wheaton Precious Metals as a Strategic Shareholder
18 Septembre 2023 - 12:00PM
Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) (“Liberty Gold” or the
“Company”) is pleased to announce the successful completion of the
previously announced (see press release dated September 11, 2023)
purchase and resale of a 0.5% Net Smelter Royalty (“NSR”) on the
Company’s Black Pine Oxide Gold Project (“Black Pine”) in
southeastern Idaho transactions (the “Royalty Transactions”) as
well as the closing of the non-brokered private placement raising
proceeds of US$5.7 million (the “Offering”).
ROYALTY TRANSACTIONS
The Company has acquired the existing 0.5% NSR
from a private company on certain claims at Black Pine by
delivering US$3.5 million in cash consideration and 200,000 common
shares of the Company. Concurrently, the Company has granted an
affiliate of Wheaton Precious Metals Corp. (“Wheaton”) a new 0.5%
NSR (the “Royalty”) covering all claims comprising Black Pine for
which the Company has received cash consideration of US$3.6
million. The Company has been granted an option to repurchase 50%
of the Royalty for US$3.6 million at any point in time up to the
earlier of commercial production at Black Pine or January 1, 2030.
An affiliate of Wheaton has also been granted a Right of First
Refusal on any royalties, streams or pre-pays that include precious
metals pertaining to Black Pine.
PRIVATE PLACEMENT FINANCING
Under the Offering, the Company sold 22.9
million shares at C$0.34 per share for proceeds to the Company of
US$5.7 million. Wheaton subscribed to US$5 million of the Offering
and existing shareholders, management and directors of the Company
subscribed to US$0.7 million of the Offering.
The Company intends to use the proceeds of the
Offering for exploration, development, economic studies and
permitting programs for the Company's projects in the Great Basin
and for general working capital.
Certain directors, management and insiders of
the Company (collectively, the “Interested Persons”) purchased or
acquired direction and control over an aggregate of 558,820 common
shares under the Offering. The Interested Persons are each
considered a “related party” of Liberty Gold and the sale of common
shares under the Offering to the Interested Persons constitutes a
“related party transaction” within the meaning of MI 61-101 –
Protection of Minority Security Holders in Special
Transactions.
The securities offered have not been, and will
not be, registered under the United States Securities Act of 1933,
as amended (the “U.S. Securities Act”) or any U.S. state securities
laws, and may not be offered or sold in the United States or to, or
for the account or benefit of, United States persons absent
registration or any applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state
securities laws. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy securities in the
United States, nor will there be any sale of these securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.
ABOUT LIBERTY GOLD
Liberty Gold is focused on exploring for and
developing open pit oxide deposits in the Great Basin of the United
States, home to large-scale gold projects that are ideal for
open-pit mining. This region is one of the most prolific
gold-producing regions in the world and stretches across Nevada and
into Idaho and Utah. We know the Great Basin and are driven to
discover and advance big gold deposits that can be mined profitably
in open-pit scenarios.
For more information, visit libertygold.ca or contact:
Susie Bell, Manager, Investor Relations Phone:
604-632-4677 or Toll Free 1-877-632-4677 info@libertygold.ca
All statements in this press release, other than
statements of historical fact, are "forward-looking information"
with respect to Liberty Gold within the meaning of applicable
securities laws, including statements that address potential
quantity and/or grade of minerals. Forward-looking information is
often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "planned", "expect",
"project", "predict", "potential", "targeting", "intends",
"believe", "potential", and similar expressions, or describes a
"goal", or variation of such words and phrases or state that
certain actions, events or results "may", "should", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made including, among
others, assumptions about future prices of gold, and other metal
prices, currency exchange rates and interest rates, favourable
operating conditions, political stability, obtaining governmental
approvals and financing on time, obtaining renewals for existing
licenses and permits and obtaining required licenses and permits,
labour stability, stability in market conditions, the timing and
success of future plans and objectives in the areas of sustainable
development, health, safety, environment, community development;
successful resolution of disputes and anticipated costs and
expenditures. Many assumptions are based on factors and events that
are not within the control of Liberty Gold and there is no
assurance they will prove to be correct.
Such forward-looking information, involves known
and unknown risks, which may cause the actual results to be
materially different from any future results expressed or implied
by such forward-looking information, including, risks related to
the interpretation of results and/or the reliance on technical
information provided by third parties as related to the Company’s
mineral property interests; changes in project parameters as plans
continue to be refined; current economic conditions; future prices
of commodities; possible variations in grade or recovery rates; the
costs and timing of the development of new deposits; failure of
equipment or processes to operate as anticipated; the failure of
contracted parties to perform; the timing and success of
exploration activities generally; delays in permitting; possible
claims against the Company; labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals, the
completion of exploration as well as those factors discussed in the
Annual Information Form of the Company dated March 28, 2023 in the
section entitled "Risk Factors", under Liberty Gold’s SEDAR profile
at www.sedar.com.
Although Liberty Gold has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements.
Liberty Gold disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise.
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