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NORTHERN SUN MINING CORP LBEFF



GREY:LBEFF - Post by User

Bullboard Posts
Comment by JohnEStromJron Dec 30, 2009 10:32pm
202 Views
Post# 16628023

RE: RE: RE: RE: RE: RE: then a miracle is supposed

RE: RE: RE: RE: RE: RE: then a miracle is supposedLegend,  if you can read.......

April 14, 2009   Press Release 6-09

"The Financing is subject to certain governmental or regulatory approvals that are required such as those from the Chinese government and the Toronto Stock Exchange ("TSX").  No insiders are participating in the transaction.  As the transaction represents a change in control of the Corporation and a dilution of more than 25% of the outstanding common shares, shareholder approval is required."

next paragraph......  where, in my opinion, the deceit began.....

As announced on February 19, 2009 Liberty currently does not have sufficient funds to meet its near term financial obligations.  Furthermore, the Corporation was 'cease traded' for failing to file its financial statements by March 31, 2009 as a result of not being able to pay its audit fees.  As a result of the foregoing, the Company has applied to the TSX under the provisions of Section 604(e) of the TSX Company Manual for an exemption from its requirement for shareholder approval on the basis that the company is in financial difficulty......."

So, to paraphrase, Liberty was run so ineptly that it couldn't pay its 'near term obligations' or its legally required audit fees ....so it was rewarded by the TSX to sell the company.  For a series of loans?   How very convenient. 

April 24, 2009   Press Release 5-10

First paragraph...

"...Liberty Mines Inc. ("Liberty or the Corporation") wishes to advise that further to its press release dated April 14, 2009, wherein it announced that it had arranged a CDN$30million equity financing with Jilin Jien Nickel Industry  Co., Ltd. ("JJNICL") of China, that the Company has also agreed to convert the existing debt in the Corporation held by JJNICL into a convertible loan.  As described in the press release dated May 8, 2008, JJNICL had previously advanced US$15 million to the Corporation as a prepayment for nickel concentrate to be delivered to JJNICL.  This advance bears interest at the rate of 9.71% per annum.  The loan will be due two years following the closing  of the private placement and can be repaid in either cash or the delivery of nickel in concentrate. However, any amount of the loan outstanding on the due date may be settled, at the option of JJNICL, in consideration for the issuance of common shares priced at
.11 per share.


"....In addition, if the maximum number of shares issuable on the conversion of the loan were issued, JNINICL wold own 87.2%.  The additional 477,352,168 common shares issued from a full conversion and loan conversion would represent a 580% dilution of the currently outstanding common shares.

Liberty MInes owes $15 million previously loaned by Jilin Jien, another $30 million for which they immediately got 51% of Liberty Mines and those convertible preferred shares AND if we don't repay during the 2 years they, not Liberty Mines, gets even MORE of the company at the rate of
.11 per share.  And, don't forget, Liberty Mines owes a further $5 million for operating capital.  What a crock of crap.
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