Liberty Gold Provides Update on TV Tower Transaction

Rhea-AI Summary

Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) has received government approval for the sale of its interest in the TV Tower copper gold project in Türkiye. The transaction is expected to close in September, completing the company's monetization of all Turkish assets. Liberty Gold's share of the US$11.5 million gross proceeds has increased to US$8.5 million due to an increase in its project interest to 73.7%. The payment will be made in three stages: US$3.7 million at closing, US$2.2 million after one year, and US$2.6 million after two years. This sale positions Liberty Gold as a pure Great Basin gold company focused on advancing two Carlin-style gold deposits.

Positive

• Received government approval for the sale of TV Tower project
• Increased interest in the project to 73.7%, resulting in higher proceeds
• Will receive US$8.5 million from the sale in three staged payments
• Completes monetization of all Turkish assets
• Positions the company as a focused Great Basin gold company

Negative

• Proceeds from the sale are spread over two years, delaying full cash realization

VANCOUVER, British Columbia, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) (“Liberty Gold” or the “Company”) is pleased to announce it has received approval from the Bureau of Mining and Petroleum Affairs of the Ministry of Energy and Natural Resources of the Turkish Government for 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). The transaction is expected to close in September.

Cal Everett, CEO and Director of Liberty Gold commented, “The government approval of the sale of TV Tower represents the final approval required for the transaction, which upon closing will complete the monetization process of all of Liberty Gold’s Turkish assets and establish the Company as a pure Great Basin gold company advancing two Carlin-style gold deposits.”

Since signing the share purchase agreement, Liberty Gold has increased its interest in the Project to 73.7% through sole funding of certain project expenditures. Liberty Gold’s share of the US$11.5 million in gross proceeds has now increased to US$8.5 million which will be paid in three stages as follows:

• US$3.7 million on the closing date.

• US$2.2 million on the first anniversary of the closing date.

• US$2.6 million on the second anniversary of the closing date.
  

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 statements that address the satisfaction of the closing conditions of the Transaction, including the approval of the Ministry, the payment of gross 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, the timing of the closing of the sale of TV Tower, 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; current economic conditions; future prices of commodities; the failure of contracted parties to perform; delays in finalising the necessary documentation to close the transaction on TV Tower; 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

What is the status of Liberty Gold's (LGDTF) TV Tower project sale?

Liberty Gold has received government approval for the sale of its interest in the TV Tower copper gold project in Türkiye. The transaction is expected to close in September 2024.

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

Liberty Gold will receive US$8.5 million from the sale, paid in three stages: US$3.7 million at closing, US$2.2 million after one year, and US$2.6 million after two years.

What is Liberty Gold's (LGDTF) current interest in the TV Tower project?

Liberty Gold has increased its interest in the TV Tower project to 73.7% through sole funding of certain project expenditures.

How does the TV Tower sale affect Liberty Gold's (LGDTF) business focus?

The sale completes Liberty Gold's monetization of all Turkish assets, positioning the company as a pure Great Basin gold company focused on advancing two Carlin-style gold deposits.