Liberty Gold Receives Final US$2.5M Option Payments for Kinsley

Rhea-AI Summary

Liberty Gold Corp. (OTCQX:LGDTF) has successfully completed the sale of a 79.9% interest in the Kinsley Mountain gold project to CopAur Minerals for a total of US$2.5 million. This amount is split evenly between cash and shares. Liberty Gold now holds 5,207,493 shares of CopAur, representing 10.23% of its outstanding shares. Additionally, Liberty retains a 1% Net Smelter Return Royalty on Kinsley. The funds are part of Liberty's strategy to re-deploy capital towards advancing its Black Pine and Goldstrike gold projects in the Great Basin.

Positive

• Received final option payment of US$2.5 million from CopAur, enhancing liquidity.
• Increased holdings in CopAur to 5,207,493 shares, representing 10.23% ownership.
• Retains a 1% NSR on Kinsley, offering potential future revenue.

Negative

• None.

US$1.25M in Cash and US$1.25M in CopAur Shares

VANCOUVER, British Columbia, May 18, 2022 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) ("Liberty Gold" or the “Company”) is pleased to announce the receipt of the final option payments for the sale of the 79.9% interest in the Kinsley Mountain gold project in Nevada (“Kinsley”) from CopAur Minerals Inc. (TSXV:CPAU) (“CopAur”). CopAur has now satisfied all requirements under the terms of option agreement for the sale of the Company’s interest in Kinsley (the “Kinsley Agreement”).

The final payments aggregate US$2.5M split evenly between cash and CopAur common shares, (“CopAur Shares”). Prior to the receipt of the final option payment, Liberty Gold owned 3,081,042 CopAur Shares following the completion of the recent merger between CopAur and New Placer Dome Gold Corp. On closing of the Kinsley Agreement Liberty Gold has received in aggregate US$3.75M in cash and now holds 5,207,493 CopAur Shares, representing 10.23% of the issued and outstanding shares of CopAur.

Liberty Gold retains a 1% Net Smelter Return Royalty (“NSR”) on Kinsley where CopAur, has the right to re-purchase up to one-half percent of the NSR upon payment of US$500,000. The Company owns a total of six royalties on Great Basin precious metal projects and is currently evaluating options of maximizing value from this portfolio. This is consistent with Liberty Gold’s strategy of re-deploying capital through monetization of non-core assets into advancing both the Black Pine and Goldstrike oxide gold development projects in the Great Basin, USA.

Liberty Gold acquired the CopAur Shares for investment purposes and will evaluate its investment in CopAur and may, based on such evaluation of market conditions and other circumstances, increase or decrease its shareholdings in CopAur as circumstances require.

This news release is being issued in accordance with National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. To obtain a copy of the early warning report, please contact Susie Bell, Manager, Investor Relations, at 1-877-632-4677, or by email: info@libertygold.ca or refer to SEDAR under CopAur’s profile.

Liberty Gold Corp.
Suite 1900, 1055 West Hastings Street
Vancouver, British Columbia
V6E 2E9

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 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. Our flagship projects are Black Pine in Idaho and Goldstrike in Utah, both past- producing open-pit mines, where previous operators 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
info@libertygold.ca

ABOUT COPAUR MINERALS

CopAur is located at Suite 888 – 700 West Georgia Street, Vancouver, British Columbia V7Y 1G5. A copy of Liberty Gold’s early warning report will appear on CopAur’s profile on SEDAR at www.sedar.com.

_{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 with respect to Liberty Gold’s future intentions regarding the securities of CopAur. 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", "potential", 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. 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 those factors discussed in the Annual Information Form of the Company dated March 25, 2022 in the section entitled "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 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 unless required by law.}

FAQ

What are the latest developments for Liberty Gold Corp. (LGDTF) regarding the Kinsley Mountain project?

Liberty Gold has completed the sale of its 79.9% interest in the Kinsley Mountain project to CopAur, receiving US$2.5 million split evenly between cash and shares.

How many CopAur shares does Liberty Gold hold after the recent transaction?

After the transaction, Liberty Gold holds 5,207,493 shares of CopAur, which is 10.23% of the company's outstanding shares.

What is the significance of the 1% Net Smelter Return Royalty for Liberty Gold?

The 1% NSR on Kinsley allows Liberty Gold to potentially earn revenue from future production at the project, providing an additional income stream.