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Liberty Gold Announces Purchase and Resale of Black Pine Royalty Interest and US$5.7 Million Private Placement Financing with Strategic Investment from Wheaton Precious Metals
VANCOUVER, British Columbia, Sept. 11, 2023 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) (“Liberty Gold” or the “Company”) is pleased to report
About this update from Liberty Gold Corp
[{"type":"text","content":" VANCOUVER, British Columbia, Sept. 11, 2023 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) (“Liberty Gold” or the “Company”) is pleased to report that it has reached agreements on a series of transactions that will provide a future option to reduce the royalty interest from the current 0.5% Net Smelter Royalty (“NSR”) to a 0.25% NSR at the Company’s Black Pine Oxide Gold Project (“Black Pine”) in southeastern Idaho on attractive financial terms. The Company is also pleased to announce a non-brokered private placement raising proceeds of up to US$5.7 million, anchored by a US$5 million strategic investment by Wheaton Precious Metals Corp. (“Wheaton”). Jason Attew, President and CEO of Liberty Gold commented, “It is a rare occasion to have an opportunity to reduce the royalty interest of a mining project, particularly one as high quality and favourably located as Black Pine. This option further de-risks the future development of Black Pine and would result in more of the project economics being attributable to Liberty Gold’s shareholders. The Company is also pleased to welcome Wheaton to its share register and is thankful for the endorsement of Black Pine and Liberty Gold by Wheaton that these transactions represent.” PURCHASE AND RESALE OF ROYALTY The Company has reached an agreement to purchase the existing 0.5% NSR from a private company on certain claims at Black Pine for US$3.5 million in cash consideration and 200,000 common shares of the Company. The 0.5% NSR was part of the consideration paid when Liberty Gold acquired Black Pine back in 2016. Concurrently, the Company has reached an agreement to grant an affiliate of Wheaton a new 0.5% NSR (the “Royalty”) for cash consideration of US$3.6 million covering all claims comprising Black Pine. As part of this transaction, 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 will also be granted a Right of First Refusal on any royalties, streams or pre-pays that include precious metals pertaining to Black Pine in the future. PRIVATE PLACEMENT FINANCING In addition, the Company is pleased to announce a non-brokered private placement of up to 22.9 million shares at C$0.34 per share for proceeds to the Compan...