Liberty Gold Corp. (TSX:LGD) is pleased to announce that it has closed its previously announced bought deal financing for aggregate gross proceeds of C$15,840,000.
A syndicate of underwriters led by Sprott Capital Partners and including Haywood Securities Inc., National Bank Financial Inc. and BMO Nesbitt Burns Inc. purchased, on a bought deal basis, 28,800,000 common shares of the Company, inclusive of 4,800,000 Common Shares issued upon exercise of the Underwriters’ over-allotment option, at a price of C$0.55 per Common Share for aggregate gross proceeds to the Company of C$15,840,000.
The net proceeds of the Offering will be used to fund exploration and development of Liberty Gold’s southwest United States gold and precious metal exploration portfolio, primarily focused on accelerating exploration and resource growth at the Black Pine project in Southern Idaho. Black Pine is a large, drill confirmed, Carlin Style oxide gold discovery where initial 2019 drill results have confirmed two high grade oxide gold discoveries within a core permitted 7.3 square kilometer area. Proceeds will be used to continue aggressively drilling the project and expanding the footprint of this large gold system. In addition, the company plans to immediately add a third drill to the project for phase 1 metallurgical testing in advance of a proposed 4 drill definition drill program in 2020. Metallurgical results would be anticipated near the end of Q1 2020, followed by an initial resource estimate and advancement to an economic study by year end.
The Common Shares issued pursuant to the Offering are subject to a four month and one day hold period expiring on January 11, 2020.
Insiders of the Company purchased 4,446,000 Common Shares pursuant to the Offering and accordingly the Offering constitutes a related-party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(a) of MI 61-101 as neither the fair market value of any of the securities issued to nor the consideration paid by such persons exceeds 25.0% of the Company’s market capitalization.
THIS NEWS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE AND IS NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF LIBERTY GOLD, NOR SHALL IT FORM THE BASIS OF, OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT FOR PURCHASE OR SUBSCRIPTION. THE COMMON SHARES OF LIBERTY GOLD WILL ONLY BE OFFERED IN ALL PROVINCES OF CANADA BY MEANS OF A PROSPECTUS. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS, AND THESE SECURITIES MAY NOT BE OFFERED OR SOLD TO, OR FOR THE ACCOUNT OR BENEFIT OF, PERSONS IN THE UNITED STATES, ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION THEREUNDER.
ABOUT LIBERTY GOLD
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 Black Pine, Goldstrike and Kinsley Mountain, all of which are past producing open-pit mines, where previous operators only scratched the surface.
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We acknowledge the [financial] support of the Government of Canada.