Anyone follow Liberty (LBE.V) news...
Feb 19, 2009 19:46 ET
Liberty Provides Corporate Update
EDMONTON, ALBERTA--(Marketwire - Feb. 19, 2009) - Liberty Mines Inc. ("Liberty or the Company") (TSX:LBE) announces that further to the December 30, 2008 press release, progress continues to be made towards obtaining the financing necessary to continue Liberty's exploration, development and production programs. Management is striving to conclude negotiations and announce the signing of a definitive agreement.
As described by a press release on April 29, 2008, a loan was advanced to the Company for CDN$16.45 million. All interest payable on the loan was pre-paid until the maturity date of October 29, 2009. The Trustee for the loan has served notice on the Company that the outstanding principal and warrants associated with the loan are due and payable according to an alleged event of default under the indenture securing the loan. The majority of the note-holders signed a resolution instructing the Trustee to call the loan under the assumption that one or more liens have been registered as charges ranking in priority to or equal to the mortgage securing the loan. Certain contractors and suppliers working for the Company have placed liens on the Company's Redstone and McWatters properties claiming priority and have commenced actions against the Company. However, there has been no judicial determination of any charge as alleged. The note-holders have agreed to negotiate a forbearance agreement which will stay the notice of default for a period of time that should be sufficient to complete the financing noted above and provide funds to settle the lien claims. In the event the forbearance agreement cannot be completed, the Company will defend this alleged default vigorously.
Mr. Mark Trevisiol has resigned as director and Chief Operating Officer. "On behalf of management and the Board of Directors of Liberty, I would like to thank Mark for his contributions to the Company and wish him all the best in his future endeavours" commented Dr. Gary Nash, President and Chief Executive Officer.
About Liberty Mines Inc.
Liberty Mines Inc. is a producer of nickel and is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada. It owns and operates the Redstone nickel concentrator near Timmins Ontario. Its operations are presently under care and maintenance due to low commodity prices.
