Liberty Gold Announces C$30 Million Underwriting
NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR BROADCASTING IN THE UNITED STATES
VANCOUVER, British Columbia, March 07, 2022 (GLOBE NEWSWIRE) — Liberty Gold Corp. (TSX:LGD) (“Liberty Gold” or the “Company”) is pleased to announce that it has entered into an agreement with National Bank Financial Inc. and BMO Capital Markets to act as lead managers (the “Lead Managers”), in their own name and, if applicable, in the name of a syndicate of underwriters (collectively with the Lead Managers, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a bought deal basis 27,273,000 common shares of the Company (the “Common Shares”), at a price of C$1.10 per Common Share, for gross proceeds of C$30,000,300 (the “Offer” ).
In addition, Liberty Gold has granted the underwriters an option (the “Over-allotment option“), exercisable at any time, in whole or in part, until the date falling 30 days after the closing of the financing, to purchase up to an additional 15% of the number of common shares solely to cover over-allotments, the where appropriate, and for market stabilization purposes.
The net proceeds from the offering will be used to fund the exploration and development of Liberty Gold’s Black Pine and Goldstrike gold development assets in the Great Basin, United States. Liberty Gold plans to aggressively advance Black Pine in 2022 with 85,000 meters of drilling, engineering and permitting programs and other risk reduction activities. At Goldstrike, a 25,000 meter drill program, engineering, de-risking, permitting and baseline studies are planned for 2022 to continue to progress the asset towards a pre-feasibility study decision.
Liberty Gold intends to file with securities commissions and other similar regulatory authorities in the provinces of Canada, other than Quebec, a preliminary short form prospectus relating to the issuance of the Common Shares by the 11 March 2022.
The Offering is expected to close on or about March 25, 2022 and is subject to a number of conditions, including, but not limited to, receipt of all necessary approvals, including Exchange Approval of Toronto and the relevant securities regulatory authorities.
THIS PRESS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE AND IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SECURITIES OF LIBERTY GOLD, NOR SHOULD IT MAKE THE BASIS OF OR BE RELIED UPON AS PART OF ANY PURCHASE AGREEMENT. OR SUBSCRIPTION. THE COMMON SHARES OF LIBERTY GOLD WILL BE OFFERED SOLELY IN ALL PROVINCES OF CANADA THROUGH THE ABOVE-MENTIONED PROSPECTUS. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “US SECURITIES ACT”) OR APPLICABLE SECURITIES LAWS, AND THESE SECURITIES MAY NOT BE OFFERED OR SOLD TO, OR ON THE BEHALF OF, OR FOR THE BENEFIT OF, PERSONS IN THE UNITED STATES OR “US PERSONS” (AS DEFINED IN REGULATIONS ENACTED UNDER THE UNITED STATES SECURITIES ACT), NOT REGISTERED UNDER THE UNITED STATES SECURITIES ACT AND APPLICABLE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION UNDER THEM.
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 surface mining. This region is one of the most prolific gold producing regions in the world and stretches across Nevada, Idaho and Utah. We know the Great Basin and are committed to discovering and advancing large gold deposits that can be profitably mined in open pit scenarios. Our flagship projects are Black Pine in Idaho and Goldstrike in Utah, two former surface mines whose previous operators have only scratched the surface.
For more information, visit libertygold.ca or contact:
Susie Bell, Manager, Investor Relations
Phone: 604-632-4677 or toll free 1-877-632-4677
All statements contained in this press release, other than statements of historical fact, are “forward-looking information” about Liberty Gold within the meaning of applicable securities laws, including statements that address the amount and/or potential mineral content. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intend”, “believe”, “potential” and other similar expressions, or describe an “objective”, or a variation of these words and expressions or state that certain actions, events or results “may”, “should”, “could”, “would”, “could” or “will” be taken, occur or be realized. Forward-looking information is not a guarantee of future performance and is based on a number of management’s estimates and assumptions as of the date the statements are made, including, among other things, assumptions about future gold and other metal prices, foreign exchange and interest rates, favorable operating conditions, political stability, obtaining approvals and fi timely government funding, obtaining renewals of existing licenses and permits and obtaining required licenses and permits, stability of the workforce, stability of market conditions, impact of the novel coronavirus (COVID-19) pandemic, the availability of equipment, availability of drilling rigs, timing of release of any updated resources, preliminary economic assessments or pre-feasibility studies, successful resolution of disputes, and expected costs and expenses. Many assumptions are based on factors and events beyond the control of Liberty Gold and there can be no assurance that they will prove to be correct.
This forward-looking information involves known and unknown risks, which may cause actual results to differ materially from future results expressed or implied by such forward-looking information, including risks relating to the interpretation of results and/or reliance on technical information provided by third parties in connection with the Company’s mineral property interests; changes in project parameters as plans continue to be refined; current economic conditions; future commodity prices; possible variations in grade or recovery rates; the costs and timing of developing new deposits; failure of equipment or processes to perform as intended; non-performance by contracting parties; the timing and success of exploration activities generally; delays in obtaining permits; possible claims against the Company; labor disputes and other mining industry risks, including the impacts of the novel coronavirus (COVID-19) pandemic; the timing of the release of any resource updates, successful preliminary economic assessments or pre-feasibility studies, delays in obtaining government approvals, financing or completion of exploration and the factors discussed in the Company’s Annual Information Form dated March 26, 2021 in the section titled “Risk Factors”, under Liberty Gold’s SEDAR profile at www.sedar.com.
Although Liberty Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause actual actions, events or results are not those anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Liberty Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.