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Liberty Provides Additional Details of Financial Transaction
Liberty Provides Additional Details of Financial Transaction
About this update from Electric Metals Usa Limited
[{"type":"text","content":"Liberty Provides Additional Details of Financial Transaction\n\n\n\nLiberty Provides Additional Details of Financial Transaction\n\nEdmonton, Alberta CANADA, April 24, 2009 /FSC/ - Liberty Mines Inc. (LBE - TSX), (\"Liberty or the Corporation\") wishes to advise that further to its press release dated April 14, 2009, wherein it announced that it has arranged a CDN$30 million equity financing with Jilin Jien Nickel Industry Co., Ltd. (\"JJNICL\") of China, that the Company has also agreed to convert the existing debt in the Corporation held by JJNICL into a convertible loan. As described in a press release dated May 8, 2008, JJNICL had previously advanced US$15 million to the Corporation as a prepayment for nickel in concentrate to be delivered to JJNICL. This advance bears interest at the rate of 9.71% per annum. The loan will be due two years following the closing of the private placement and can be repaid in either cash or the delivery of nickel in concentrate. However, any amount of the loan outstanding on the due date may be settled, at the option of JJNICL, in consideration for the issuance of common shares priced at $0.11 per share. The outstanding balance of the loan on April 30, 2009 will be approximately US$15,826,534 million, including interest. In the unlikely event that no payments are made on the loan in the next two years, the maximum liability would be approximately US$18,315,360 million which, at a current exchange rate, represents CDN$22,508,738. If this entire amount was converted at $0.11 per share, the maximum number of shares issuable would be 204,624,895 shares. In the unlikely event that no payments are made on the loan in the next two years, the maximum liability would be approximately US$18,315,360 million which, at a current exchange rate, represents CDN$22,508,738. If this entire amount was converted at $0.11 per share, the maximum number of shares issuable would be 204,624,895 shares. If all of the preferred shares were converted, JJNICL would own 76.8% of the common shares of the Corporation. In addition, if the maximum number of shares issuable on the conversion of the loan were issued, JJNICL would own 87.2%. The additional 477,352,168 common shares issued from a full conversion and loan c...