Liberty Gold Closes TV Tower Sale Transaction

Rhea-AI Summary

Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) has closed the sale of its interest in the TV Tower copper gold project in Türkiye, receiving US$3.7 million at closing. This transaction completes the monetization of all Liberty Gold's Turkish assets and eliminates an annual funding draw of approximately one million dollars. The company will receive additional payments of US$2.2 million on October 4, 2025, and US$2.6 million on October 4, 2026.

CEO Cal Everett stated that this sale allows Liberty Gold to focus on advancing its projects in the Great Basin. The company is also nearing completion of a Pre-Feasibility study for the Black Pine Oxide Gold Project in Idaho. Importantly, there is no share dilution associated with this asset sale.

Positive

• Received US$3.7 million from the sale of TV Tower project
• Additional US$4.8 million to be received in future payments
• Elimination of approximately US$1 million annual funding draw
• No share dilution associated with the asset sale
• Allows focus on advancing projects in the Great Basin

Negative

• Divestment of a potentially valuable copper-gold asset

US$3.7 Million Received at Closing

VANCOUVER, British Columbia, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) (“Liberty Gold” or the “Company”) is pleased to announce it has closed the previously announced sale of its interest in the TV Tower copper gold project (“TV Tower” or the “Project”), located in Biga Province, northwest Türkiye (see press release dated April 17, 2024) and has received US$3.7 million representing the Company’s share of the payment due upon closing. There is no share dilution associated with this asset sale.

Liberty Gold’s share of the remainder of the gross proceeds will be paid in two stages as follows:

• US$2.2 million on October 4, 2025.
• US$2.6 million on October 4, 2026.

Cal Everett, CEO and Director of Liberty Gold commented, “The closing of the TV Tower transaction has completed the monetization process of all of Liberty Gold’s Turkish assets and removes the approximate one million dollar annual funding draw. It enables the Company to focus solely on advancing its projects in the Great Basin. The Company is nearing completion of a Pre-Feasibility study of the Black Pine Oxide Gold Project in Idaho.”

ABOUT LIBERTY GOLD

Liberty Gold is focused on exploring for and developing open pit oxide deposits in the Great Basin of the United States, home to large-scale gold projects that are ideal for open-pit mining. This region is one of the most prolific gold-producing regions in the world and stretches across Nevada and into Idaho and Utah. We know the Great Basin and are driven to discover and advance big gold deposits that can be mined profitably in open-pit scenarios. 

For more information, visit libertygold.ca or contact:

Susie Bell, Manager, Investor Relations
Phone: 604-632-4677 or Toll Free 1-877-632-4677
info@libertygold.ca

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Liberty Gold within the meaning of applicable securities laws, including but not limited to; the payment of future staged proceeds of the Transaction, the exploration and development of open pit oxide deposits in the Great Basin, and the discovery and advancement of gold deposits in the Great Basin. 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", "intends", "believe", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licenses and permits and obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, the availability of drill rigs, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Liberty Gold and there is no assurance they will prove to be correct. 

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results and/or the reliance on technical information provided by third parties as related to the Company’s mineral property interests; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; the timing of the publication of any updated resources; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration well as those factors discussed in the Annual Information Form of the Company dated March 28, 2024 in the section entitled "Risk Factors", under Liberty Gold’s SEDAR+ profile at www.sedarplus.ca. 

Although Liberty Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as 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. 

FAQ

How much did Liberty Gold (LGDTF) receive from the TV Tower sale?

Liberty Gold received US$3.7 million at closing, with additional payments of US$2.2 million due on October 4, 2025, and US$2.6 million due on October 4, 2026.

What is the impact of the TV Tower sale on Liberty Gold's (LGDTF) operations?

The sale eliminates an annual funding draw of approximately US$1 million and allows Liberty Gold to focus on advancing its projects in the Great Basin.

Will the TV Tower sale result in share dilution for Liberty Gold (LGDTF)?

No, there is no share dilution associated with this asset sale.

What project is Liberty Gold (LGDTF) currently focusing on after the TV Tower sale?

Liberty Gold is nearing completion of a Pre-Feasibility study for the Black Pine Oxide Gold Project in Idaho.