Liberty Gold (TSX: LDG; OTCQX: LGDTF) has upsized its non-brokered, private placement to $12.5 million from its initial offer of $9.5 million. Up to 35.7 million units are to be issued at a price of $0.35 each. A unit will consist of one common share and one-half of a share purchase warrant. Each whole warrant will entitle the holder to purchase a common share at a price of $0.45 for the next 24 months. The offer is scheduled to close in mid-May.
Liberty Gold plans to use the net proceeds to continue drilling its Black Pine gold project in Idaho and to advance engineering, development, studies, and permitting at its Goldstrike project in Utah.
“This upsize reflects the response from our investors and underscores the compelling value proposition of Liberty Gold,” stated Cal Everett, CEO and director of Liberty Gold. “This additional capital will further strengthen our financial position as we advance Black Pine and pursue our strategic development objectives and our goal of building the resource to the plus-five million ounce range.”
Liberty Gold bought the Black Pine property in 2016 from the previous owner. A resource estimate was produced in 2023 for a pit shell at a cut-off grade of 0.20 g/t gold. It includes 2.6 million indicated tonnes of oxides grading 0.52 g/t gold and containing 2.6 million oz. An inferred category of 35.2 million tonnes at 0.43 g/t gold containing 483,000 oz. was also outlined.
The Goldstrike project hosted an oxide heap leach operation from 1988 to 1994. It produced about 209,000 oz. gold and 197,000 oz silver from 12 shallow pits. Liberty became owner in 2014 with its acquisition of Cadillac Mining. A preliminary economic assessment was released in 2018, and since that time, the company has continued drilling and conducted metallurgical studies. A prefeasibility study is due this year.
More information is posted on www.LibertyGold.ca.
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