NOT for Turdblossom aka victor2009 Beware folks..................
Liberty Mines:
Current price
.14/share
Current Market Cap $28.91 million.
Total shares outstanding 206 million.
Let's take a walk down memory lane.... and into the present.
Why will there never be an increase of any substance in Liberty Mines?
On May 25, 2009, the Company closed a $30,000,000 equity financing with Jilin Jien Nickel Industry Co., Ltd. of China ("JJNICL") with the purchase of a 51% interest in the common shares of the Company. The financing consisted of a private placement of $9,430,604 for 85,732,763 common shares at
.11 per share and the issuance of 186,994,510 preferred shares at
.11 per share for a total of $20,569,396.
From the September 30, 2011 MD&A
$28,917,732 in previous operating advances (including accrued and unpaid interest) were
converted into a new credit facility (the “JIIL Facility”) which bears interest at the rate of 10% per
annum calculated monthly and is repayable on December 30, 2012.**** Additional advances of up to a maximum of $20,000,000 will also be available to assist with ongoing operations or to pursue
mergers & acquisition opportunities. Interest will accrue over the term of the facility and will be
payable on the due date. As of September 30, 2011, $7,400,000 of additional finances has been
provided. Subsequent to September 30, 2011, Liberty has drawn down a further $4,000,000.
US$19,348,828.31 was converted into a new credit facility (the “JJNICL Facility”) which bears
interest at the rate of 10% per annum calculated monthly and is repayable on June 30, 2014.
Interest accruing in the first eighteen months will be added to the principal but interest accruing in
the second eighteen months will be payable monthly.
JJNICL converted 38,098,908 Preferred Shares into common shares. This has resulted in JJNICL
owning 60% of the outstanding Common Shares of the Corporation. The terms of the 148,895,602
Preferred Shares that remained outstanding have been amended so that they will no longer be
convertible and no further dilution will result. However, JJNICL will be given the right to require the Company to redeem the remaining Preferred Shares at a price of
.11 per share plus accrued
and unpaid dividends payable either in cash or by the delivery of nickel concentrate when such
redemption is in compliance with applicable law. All other terms of the Preferred Shares will remain unchanged.
The JJNICL Facility will include the ability to borrow up to an approximate amount of $21,756,053.39 in a new term loan (representing the redemption price plus accrued dividends from May of 2009 to June 30, 2013 on the remaining 148,895,602 Preferred Shares to meet the obligations to redeem Preferred Shares if required as set out in paragraph 4 hereof until June 30, 2013).
**** This is the Market Cap of the entire company if EVERY share were sold today. And JJNICL still L has all of those preferred shares that are bearing interest at 10% [as memory serves]. Where IS the profit to other shareholders? All going to JJNICL, the owners. They do NOT have to operate at a profit.