Liberty Gold Corp (LGDTF)

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Liberty Gold Reports Q4 2020 Financial and Operating Results

Fri, Mar 26, 2021

VANCOUVER, B.C. – Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) ("Liberty Gold" or the "Company"), is pleased to announce its financial and operating results for the year ended December 31, 2020. All amounts are presented in United States dollars (“USD”) unless otherwise stated.

Liberty Gold is focused on advancing a pipeline of Carlin-Style gold deposits in the Great Basin, U.S.A., a mining-friendly jurisdiction that is home to large-scale oxide gold systems ideal for open-pit heap leach mining. The Great Basin covers portions of the states of Nevada, Utah and Idaho. The Company has a proven track-record in discovery and building value in this region.

HIGHLIGHTS FROM 2020 AND SUBSEQUENT EVENTS:

We have monetized a number of our non-core assets through sale or option1:

- HalilaÄŸa: We closed the sale of the HalilaÄŸa porphyry copper gold deposit in Turkey and received the first of the three staged payments of $6.0 million. A further two $6.0 million installments are bank guaranteed and will be received on August 15, 2021 and August 15, 2022, respectively.
- Kinsley: We received 8,844,124 common shares in New Placer Dome Gold Corp (TSXV:NGLD) (“New Placer Dome”) and $1.25 million as the initial option payment, on the option of the Kinsley Mountain gold deposit (“Kinsley”). Under the terms of the option agreement, a further $2.5 million is expected in June 2021, and a further $2.5 million in common shares of New Placer Dome is expected in June 2022.
- Baxter Spring: Pursuant to a purchase-option agreement, we received $0.25 million in cash and 14,986,890 common shares in Huntsman Exploration Inc. (TSXV:HMAN) (“Huntsman”) equal to 19.5% of the issued and outstanding shares in Huntsman. A further $250,000 is due on November 12, 2021.
- Regent: In March 2020, we sold our 15% net profit interest (“NPI”) in the Regent property in Nevada to Ely Gold Royalties Inc. (TSXV:ELY) (“Ely”) for a total consideration of $0.80 million and 2,000,000 warrants to purchase common shares in Ely (“Ely Warrants”). The Ely Warrants are each exercisable for C$0.43 and expire on December 18, 2021.
- Portfolio Properties: On March 3, 2021 we closed the sale of three of our 100% owned portfolio properties, consisting of Anchor, Stateline and Sandy, as well as three of our 49% owned properties (Brik, Easter and Viper), to Raindrop Ventures Inc. (CSE:RAYN) (“Raindrop”) for a total consideration of $0.05 million and 4,013,406 common shares of Raindrop, representing 9.9% of Raindrop’s issued and outstanding common shares. We retained a 1.5% net smelter return (“NSR”) on Anchor, Stateline and Sandy.

We have received a total of C$8.1 million from the exercise of all 12,469,212 Liberty Gold common share purchase warrants (“Warrants”) issued pursuant to the bought deal financing that closed on January 26, 2018; the Warrants were each exercisable for C$0.652. C$5.05 million was received during 2020, and C$2.8 million received during 2021.

At Black Pine we:

- Increased our strategic land holding by staking 201 new claims covering a total of 16.5 square kilometres (“km2”), increasing the size of the core claim block as well as adding a new area to the west of the original claims for a total of 47.8 km2.3
- Received approval of an amendment to our Plan of Operations allowing us to access to an additional 4.6 km2 including key strategic drill targets, as well as an easement to a water well.4
- Reported weighted average 82.1% gold extraction in phase 2 of metallurgical column testing, with a range up to 94.5% gold extraction.5
- Discovered or confirmed six new mineralised zones. The most significant new discovery is the D-3 zone, situated immediately west of and under the D-1 zone.

Read more & view tables at:
https://libertygold.ca/images/news/2021/March/21-05_Q4_2020_Financials_FINAL.pdf