VANCOUVER, British Columbia, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) ("Liberty Gold" or the “Company”) is pleased to announce the receipt of the second US$6.0 million payment as part of the consideration for the sale of its 40% interest in the Halilaa copper gold porphyry deposit (“Halilaa”), located in Biga Province, northwest Turkey to Cengiz Holdings A.. (the “Halilaa Sale Agreement”). Liberty Gold has received US$16.0 million to-date from the sale of Halilaa with a further US$6.0 million due to be received on August 11, 2022, and subject to a bank guarantee1.
Additionally, from January 1, 2021, to the date of this news release, the Company received a total of C$2.16 million from the exercise of 3,594,300 Liberty Gold common shares purchase warrants (“Warrants”), issued pursuant to the bought deal financing that closed on October 2, 2018; the Warrants are each exercisable for C$0.60 and expire on October 2, 2021. If all remaining October 2018 warrants are exercised, Liberty Gold will receive a total of C$10.5 million in cash proceeds to further strengthen its treasury.
The Halilaa divestiture is consistent with Liberty Gold’s strategy of re-deploying capital from non-core assets into the high-quality oxide-gold projects in the Great Basin, USA. The Company has US$15.3 million in cash as of June 30, 2021, has received US$6.0 million on August 11, 2021, and expects a further US$8.4 million in proceeds by the end of 2021. We remain well funded to complete our 2021 exploration programs and end the year with a strong treasury to continue advancing the Black Pine and Goldstrike projects in 2022.
HIGHLIGHTS FOR Q2 2021 Financial and Operating Results:
- At Black Pine we announced the first modern mineral resource estimate (the “Mineral Resource”)2:
- The Mineral Resource has an effective date of May 1, 2021, is reported in a pit shell at a cut-off grade of 0.20 grams per tonne (“g/t”) gold (“Au”) and consists of:
- An indicated mineral resource of 1,715,000 ounces of gold at an average grade of 0.51 g/t Au and contained in 105,075,000 tonnes; and
- An inferred mineral resource of 370,000 ounces of gold at an average grade of 0.37 g/t Au and contained in 31,211,000 tonnes.
- A high-grade subset of the Mineral Resource using a cut-off grade of 0.5 g/t Au consists of:
- An indicated mineral resource of 1,020,000 ounces of gold at an average grade of 1.04 g/t Au and contained in 30,520,000 tonnes; and
- An inferred mineral resource of 134,000 ounces of gold at an average grade of 0.94 g/t Au and contained in 4,440,000 tonnes.
- On-going 2021 drill program at Black Pine targeting step-out drilling on all of the resource zones; upgrading inferred portions of the resource to indicated for use in further economic studies; and discovery drilling throughout the 12 km2 permitted drill area.
- Commenced Preliminary Economic Assessment at Black Pine.
- A 15,000 m RC drill program at Goldstrike began in May with a goal to convert inferred gold ounces as classified in the current resource estimate to indicated.
- We appointed a new Chief Operating Officer, Jonathan Gilligan, a senior mining executive with over 35-years of multi-commodity, international experience across technical services, capital projects, open pit mine construction and operations3.
- We appointed a new Vice President Business Development, Brian Martin, a mining finance professional with over 13 years of experience in mergers and acquisitions, corporate strategy, investor relations and capital markets4.
- At TV Tower we announced maiden resource estimates for five gold and copper deposits5 more than tripling the resource endowment.
Moira Smith, Ph.D., P.Geo., Vice-President Exploration and Geoscience, Liberty Gold, is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the information contained in the release is accurate.
https://www.globenewswire.com/news-release/2021/08/12/2280216/0/en/Liberty-Gold-Receives-US-6-million-Payment-for-the-Sale-of-Halila%C4%9Fa-Turkey.html