Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) announced in a news release it closed two sales.
One was the sale of its net profit interest in the Regent Hill property in Nevada to Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB). With the transaction, Liberty received US$800,000 and 2 million purchase warrants for Ely Gold common shares, exercisable at CA$0.43 apiece for two years.
The other closed deal was the sale, through a purchase option agreement, of the Griffon property, also in Nevada, to Fremont Gold Ltd. (FRE:TSX.V). With that, Liberty received US$25,000 at the time the option agreement was exercised. When the TSX Venture Exchange approves the agreement, Liberty will receive another US$25,000 plus 2.5 million Fremont common shares.
Further, on the first anniversary of the execution date, Liberty will receive US$50,000 plus the number of Fremont common shares that will bring Liberty's total ownership of Fremont shares to 9.9%. On the second, third and fourth anniversaries, Liberty will receive US$50,000, US$75,000 and US$100,000, respectively. Also, Liberty is entitled to a 1% net smelter return royalty, which Fremont may repurchase for US$1 million.
Liberty also announced that between July 2019 and March 12, 2020, it received CA$3,327,150 and CA$401,375 from the early exercise of Liberty Gold share purchase warrants issued in accordance with its bought-deal financings that closed on Oct. 2, 2018 and Jan. 26, 2018, respectively.
Moving forward, the Great Basin area-focused company now can focus on exploration work at its core projects, which are the Black Pine oxide gold discovery in Idaho and the Goldstrike oxide gold deposit in Utah. "The company's intent is to continue to lower noncore project obligations and maximize exploration expenditures with no equity dilution to shareholders," the release noted.
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