Liberty Gold Corp. (TSX:LGD) is pleased to announce it has signed a share purchase agreement for the sale of its interest in the Halilağa copper gold porphyry deposit, located in Biga Province, northwest Turkey, to Cengiz Holdings A.Ș.
Pursuant to the terms of the Agreement, Liberty Gold and its joint venture partner, Teck Madencilik Sanayi Ticaret A.Ș. a subsidiary of Teck Resources Limited, have agreed to jointly sell their 100% interest in the company that holds the Project to Cengiz for US$55 million cash, to be paid in three stages over a two-year period. The consideration will be apportioned 60% to Teck and 40% to Liberty Gold, pro-rata to their ownership interests. Cengiz will acquire the Project by purchasing the shares in a Turkish corporation held by Teck and Liberty Gold. As a result of the Transaction, Liberty Gold will receive a total of US$22 million.
Cengiz is active in the fields of construction, energy, mining, metallurgy and the chemicals/fertilizer industries. It began its first activities in the late 1970s in construction, and is now one of Turkey’s leading groups with more than 12 main companies, 96,000 employees and an annual turnover of US$6 billion. Within Cengiz’s mining and metallurgy operations, Cengiz’s subsidiaries Eti Bakir A.Ș. and Eti Aluminyum A.Ș. own and operate copper, aluminium, antimony, phosphate and coal mines throughout Turkey and the Samsun Cathode Copper Smelter facility, Seydisehir Aluminium Electrolysis facility and Mazidagi Fertilizer and Metal recovery plants.
Terms of the Agreement:
Closing of the Transaction is subject to customary conditions including the approval of the Turkish Ministry of Energy and Natural Resources.
The US$55 million purchase price will be paid in three stages as follows:
ABOUT LIBERTY GOLD
Liberty Gold will continue to own 60% of the TV Tower project in the Biga Province that contains a large number of exploration targets ranging from high-sulphidation and low-sulphidation epithermal gold-silver and three drill confirmed porphyry copper-gold discoveries.
Liberty Gold is focused on exploring 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. Our flagship projects are Goldstrike, Black Pine and Kinsley Mountain, all of which are past producing open-pit mines, where previous operators only scratched the surface.
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