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Liberty Completes $30,000,000 Transaction with Jilin Jien Nickel
Liberty Completes $30,000,000 Transaction with Jilin Jien Nickel
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[{"type":"text","content":"\nLiberty Completes $30,000,000 Transaction with Jilin Jien Nickel\n\n\n May 25, 2009 (Filing Services Canada) -- Liberty Mines Inc. (LBE - TSX), is pleased to announce that it has completed the CDN$30,000,000 transaction (\"Transaction\") with Jilin Jien Nickel Industry Co., Ltd. (\"JJNICL\") of Panshi City in China announced on April 14, 2009. JJNICL is now the largest shareholder of Liberty with a 51% ownership of the common shares of the Corporation. It also holds 186,994,510 convertible and redeemable preferred shares fully described in recent press releases.As part of the Transaction, JJNICL paid a negotiated amount to purchase the notes and warrants from the lenders of a loan made to Liberty on April 29, 2008. The warrants were cancelled as one of the conditions to close the Transaction. JJNICL has a first charge on the Redstone and McWatters mining leases as security for the funds advanced to the Corporation from May 2008 to August 2008 for prepayments (\"collectively the Prepayment\") of nickel in concentrate. The Prepayment is to be repaid to JJNICL by May 25, 2011 and bears interest at 9.71% annually on the unpaid balance. Any balance due on the Prepayment after that date can be converted, at the sole discretion of JJNICL, to common shares of the Corporation at 11 cents per share.Liberty is now preparing to start operations later this year and fully intends to have the Prepayment paid to JJNICL before the due date; thus avoiding significant dilution to the outstanding common shares at that time.In accordance with the Transaction, JJNICL has appointed three distinguished individuals to the board of directors of the Corporation; a fourth independent director will be appointed by JJNICL in the near future. The new directors appointed are: Mr.Xu Guangping, a director of JJNICL and Chairman of Jilin Haorong Nonferrous Metal Group Co.,Ltd., the parent company to JJNICL; Mr. Wu Shu, a director of JJNICL and President Jilin Haorong Nonferrous Metal Group Co.,Ltd.; and Mr. Wang Xingrui, Vice-President Jilin Jien Nickel Industry Co., Ltd.Gary Nash, President and CEO of Liberty, commented: \"Having JJNICL as a major shareholder and a strategic partner is an exciting development for Liberty which firmly puts it on the path to become a mid-tier producer of nickel. We welcome the new members to the Liberty board of directors who ar...