Strategic Investment by Centerra Gold Boosts Liberty Gold's Growth
Liberty Gold Welcomes Investment from Centerra Gold
Liberty Gold Corp., a leading company in gold resource development, has made an exciting announcement regarding a significant investment from Centerra Gold Inc. This strategic partnership is set to enhance Liberty Gold's growth potential as it continues to focus on its flagship project, Black Pine.
Details of the Investment
Centerra Gold has entered a subscription agreement to purchase 9.9% of Liberty Gold's outstanding common shares. Specifically, they will acquire 50,025,230 common shares at a price of C$0.56 each, providing Liberty Gold with gross proceeds totaling C$28.01 million. This share price reflects a 10% premium over the recent volume-weighted average price on the Toronto Stock Exchange (TSX).
Leadership Insights on the Collaboration
Jon Gilligan, the CEO of Liberty Gold, expressed his enthusiasm for this collaboration, noting, "Welcoming Centerra as a strategic investor highlights our progress and the vast potential of the Black Pine project. Their expertise and connection to Idaho position us well to enhance the timeline and value of this development. We are eager to work closely with them as we aim to advance Black Pine towards feasibility and subsequent construction decision."
Centerra's Contribution
Paul Tomory, CEO of Centerra, also commented on the investment, stating, "We're excited to support the Liberty Gold team through this strategic investment. The upcoming pre-feasibility study, paired with promising recent drill results, emphasizes the asset's potential. We believe that our operational expertise can align with Liberty Gold's efforts, fostering synergies to elevate Black Pine into production efficiently."
Funding Utilization and Future Prospects
The proceeds from this investment will be pivotal in advancing technical studies at the Black Pine project, as well as covering general corporate purposes. This strategic endeavor is anticipated to close around October 1, 2025, pending standard conditions, including TSX approval.
Investor Rights Agreement
Concurrently, Liberty Gold and Centerra will enter a customary investor rights agreement at closing. This agreement ensures that, as long as Centerra maintains specific shareholding thresholds, they will gain numerous rights, including those pertaining to financing participation and board representation.
Vision for Black Pine Project
Liberty Gold's Black Pine project is set in the prolific Great Basin of the United States, known for its historic gold production. The project features a significant and expanding resource that presents strong economic potential. It is designed for environmentally responsible operation as an open-pit/heap leach mine.
About Liberty Gold
Liberty Gold is dedicated to developing open-pit oxide projects in one of the world’s richest gold-producing regions, affecting states like Nevada, Idaho, and Utah. The company's strategic focus continues to be the advancement of its projects with careful attention to sustainable practices.
Contact Information
For further inquiries, individuals can reach within the company. Susie Bell, Manager of Investor Relations, is available at 604-632-4677 or toll-free at 1-877-632-4677. Additionally, one can find more information on Liberty Gold’s endeavors and developments by visiting their official website.
Frequently Asked Questions
What is the significance of the 9.9% investment by Centerra Gold?
The investment signifies a strategic partnership that enhances Liberty Gold's potential to develop its Black Pine project, providing necessary funding and expertise.
How will Liberty Gold utilize the funds from Centerra's investment?
The funds will be allocated towards advancing technical studies on the Black Pine project and for general corporate purposes.
When is the expected closing date for the investment?
The transaction is expected to close around October 1, 2025, subject to regulatory approvals.
What does the investor rights agreement entail?
The agreement grants Centerra rights such as financing participation and board nomination, contingent on their shareholding levels.
What is the Black Pine project?
Black Pine is an open-pit oxide gold project located in a rich mineral belt in the United States, showing promising potential for economic viability.
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