Finally some news which puts the Chinese pretty much all in control.
Liberty Completes $30,000,000 Transaction with Jilin Jien Nickel
Edmonton, Alberta CANADA, May 25, 2009 /FSC/ - Liberty Mines Inc. (LBE - TSX),
is pleased to announce that it has completed the CDN$30,000,000 transaction
("Transaction") with Jilin Jien Nickel Industry Co., Ltd. ("JJNICL") of Panshi
City in China announced on April 14, 2009. JJNICL is now the largest shareholder
of Liberty with a 51% ownership of the common shares of the Corporation. It also
holds 186,994,510 convertible and redeemable preferred shares fully described in
recent press releases.
As part of the Transaction, JJNICL paid a negotiated amount to purchase the
notes and warrants from the lenders of a loan made to Liberty on April 29, 2008.
The warrants were cancelled as one of the conditions to close the Transaction.
JJNICL has a first charge on the Redstone and McWatters mining leases as
security for the funds advanced to the Corporation from May 2008 to August 2008
for prepayments ("collectively the Prepayment") of nickel in concentrate. The
Prepayment is to be repaid to JJNICL by May 25, 2011 and bears interest at 9.71%
annually on the unpaid balance. Any balance due on the Prepayment after that
date can be converted, at the sole discretion of JJNICL, to common shares of the
Corporation at 11 cents per share.
Liberty is now preparing to start operations later this year and fully intends
to have the Prepayment paid to JJNICL before the due date; thus avoiding
significant dilution to the outstanding common shares at that time.
In accordance with the Transaction, JJNICL has appointed three distinguished
individuals to the board of directors of the Corporation; a fourth independent
director will be appointed by JJNICL in the near future. The new directors
appointed are: Mr.Xu Guangping, a director of JJNICL and Chairman of Jilin
Haorong Nonferrous Metal Group Co.,Ltd., the parent company to JJNICL; Mr. Wu
Shu, a director of JJNICL and President Jilin Haorong Nonferrous Metal Group
Co.,Ltd.; and Mr. Wang Xingrui, Vice-President Jilin Jien Nickel Industry Co.,
Ltd.
Gary Nash, President and CEO of Liberty, commented: "Having JJNICL as a major
shareholder and a strategic partner is an exciting development for Liberty which
firmly puts it on the path to become a mid-tier producer of nickel. We welcome
the new members to the Liberty board of directors who are very knowledgeable in
the mining and metal processing industries."
Mr. Wang Xingrui, Vice-President of JJNICL commented: "Liberty has good quality
assets and lots of potential for growth. We are honoured to be working with
Liberty".
To allow the new directors to be added to the Board of Directors, Mr. Steve
Anderson and Mr. Don Schurman have resigned. Both directors have been with the
Corporation since the change of management in March 2005. Mr. Anderson has
contributed to the assemblage of Liberty's mining claim groups in the Shaw Dome
nickel belt, McAra Lake-Ray cobalt properties, and the Groves nickel copper PGM
project. Mr. Schurman has been the Chairman of the Board for the past four years
and has provided strong independent guidance to help transform Liberty from an
exploration company into a producer of nickel. The Board of Directors wish to
thank them for their services and contributions to the development of the
Corporation and wish them well in their future endeavours.