Liberty Gold Receives Second Year Option Payments for Kinsley Gold Project – Nevada

About this update from Liberty Gold Corp

[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) (\"Liberty Gold\" or the “Company”) is pleased to announce the receipt of 17,222,222 common shares in New Placer Dome Gold Corp. (TSX-V:NGLD) (“New Placer Dome”) (“NPD Shares”) pursuant to to an option agreement dated December 2, 2019, as amended, between the Company and New Placer Dome (the “Option Agreement”), as partial consideration for the sale of Liberty Gold’s 79.9% interest in the Kinsley Mountain gold project in Nevada (“Kinsley”). The receipt of US$1.25 million in cash, due pursuant to the Option Agreement, is expected to be received prior to November 19, 2021. The Option Agreement is consistent with Liberty Gold’s strategy of re-deploying capital into advancing both the Black Pine and Goldstrike oxide gold development projects. As of November 12, 2021, Liberty Gold now holds 26,066,346 NPD Shares (C$2.7 million in value), representing approximately 15.8% of the issued and outstanding shares on an undiluted basis. Both Liberty Gold and Cal Everett, the Company’s President and CEO will declare as insiders of New Placer Dome. Under the terms of the Option Agreement, New Placer Dome will be required to make an additional payment of US$1.25 million in cash and US$1.25 million in NPD Shares on or before June 2, 2022. Further Transaction Details On June 2, 2020, pursuant to the Option Agreement, New Placer Dome paid the initial option payments of US$1.25 million, US$124,570 in repayment of the surety bond deposit and 8,844,124 NPD Shares, representing 9.9% of New Placer Dome’s issued and outstanding common shares as at that date. Liberty Gold’s 79.9% interest in Kinsley is held through it’s 100% owned subsidiary Pilot Gold (USA) Inc. Liberty Gold retains a 1% Net Smelter Royalty on Kinsley where New Placer Dome, at its sole discretion, has the right to re-purchase up to one-half percent (0.5%) of the NSR royalty upon payment of US$500,000. Liberty Gold acquired the NPD Shares for investment purposes and will evaluate its investment in New Placer Dome from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease its shareholdings in New Placer Dome as circumstances require. This news release is being issued in accordance with National Instrument 62-103 The Early War...

More updates from Liberty Gold Corp