Liberty Gold Strengthens Position with Centerra Gold Investment
Strategic Investment Enhances Liberty Gold's Prospects
Liberty Gold Corp. is excited to announce a significant financial boost through a subscription agreement with Centerra Gold Inc. This partnership allows Centerra to acquire a notable 9.9% stake in the Company by purchasing 50,025,230 common shares at a price of C$0.56 per share. This total investment amounts to an impressive C$28.01 million, marking a strengthened alliance aimed at propelling Liberty Gold's ambitious goals for its flagship project, Black Pine.
CEO Insights on the Partnership
Liberty Gold's CEO, Jon Gilligan, expressed enthusiasm regarding this new partnership, stating, "We are thrilled to welcome Centerra as a strategic investor in Liberty Gold. Their investment is a strong endorsement of our progress and the compelling potential of our flagship US oxide gold project, Black Pine." Gilligan anticipates that with Centerra's operational expertise and presence in Idaho, they will collaboratively unlock value and expedite the development timeline for Black Pine.
Centerra Gold's Perspective
The collaborative sentiment is reciprocated by Centerra's CEO, Paul Tomory, who stated, "We are pleased to support the Liberty Gold team with this strategic investment. Liberty Gold’s pre-feasibility study on Black Pine showcases its vast potential. The recent drill results demonstrate areas ripe for resource expansion, and we believe our operational know-how will enhance Liberty Gold’s efforts significantly." This mutual enthusiasm signals a robust partnership destined for success.
Utilizing Funds for Advancements
Funds generated from this strategic investment will be pivotal for advancing technical studies at the Black Pine project alongside covering general corporate expenses. The transaction is projected to finalize by October, pending the customary approval from the Toronto Stock Exchange (TSX).
Investor Rights Agreement and Future Plans
As part of this agreement with Centerra, Liberty Gold will establish a customary investor rights agreement. This will enable Centerra to maintain certain rights, including participation in financing efforts, access to critical information, and representation on technical committees. Importantly, they will also have the right to appoint a nominee to the Board of Directors, fostering deeper integration into the Company's governance.
Liberty Gold's Commitment to Excellence
Liberty Gold is dedicated to developing open-pit oxide deposits in the Great Basin of the United States, an area renowned for its rich gold reserves. The Company is focused on advancing the Black Pine project, which has shown promising results and potential for economic viability through environmentally responsible open-pit/heap leach operations.
About Liberty Gold
Liberty Gold Corp. is on the march toward becoming a pivotal player in gold mining within the Great Basin. Their commitment to transparency and strategic partnerships lays a solid foundation for their long-term goals. As they continue to explore and develop the Black Pine project, they are well on their way to reinforcing their reputation in the industry.
Frequently Asked Questions
What is the significance of Centerra's investment in Liberty Gold?
Centerra's investment signifies confidence in Liberty Gold's potential, particularly regarding the development of the Black Pine project.
How much did Centerra invest in Liberty Gold?
Centerra invested C$28.01 million to acquire a 9.9% stake in Liberty Gold through the purchase of common shares.
What are the immediate plans for the investment proceeds?
The funds will primarily be allocated for advancing technical studies at the Black Pine project and for general corporate purposes.
When is the subscription expected to close?
The subscription is expected to finalize around October, contingent on TSX approval and other customary conditions.
What strategic rights does Centerra acquire with this investment?
The investment agreement includes rights for financing participation, access to information, technical representation, and appointing a nominee to Liberty Gold's Board of Directors.
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