Liberty Gold (TSX:LGD) has entered into a definitive purchase agreement with Heliostar Metals (TSX-V:HSTR) to sell its subsidiary Speciality American Metals which owns the Goldstrike Project in Utah, for US$72.5 million ($103.45 million).
Under the agreement, Liberty Gold will receive the total consideration in tranches, with the final US$25 million payment received upon the release of a Feasibility Study, a construction decision or five years from closing.
CEO Jon Gilligan says the transaction provides non-dilutive capital, strengthening the company’s balance sheet at an important stage in the advancement of Black Pine.
“The structure delivers near-term funding while maintaining exposure to additional value as Goldstrike advances, supporting feasibility and long-lead procurement at Black Pine, without shareholder dilution,” Gilligan says.
Canaccord Genuity and 3L Capital acted as financial advisors to Liberty Gold, while Blake, Cassels & Graydon and Parsons Behle & Latimer acted as legal counsel.
The Goldstrike Project, covering 5,173 hectares, comprises a central block of patented claims that are surrounded by a contiguous block of unpatented claims and land leased from the Utah School and Institutional Trust Lands Administration.
Liberty Gold is a US-focused gold developer building and advancing a pipeline of projects in the Great Basin. The Black Pine Oxide Gold Project is located in southern Idaho. The project is a past-producing run-of-mine heap leach system being advanced through feasibility and permitting toward a modern open-pit operation.
Heliostar Metals is a precious metals-focused company, set to produce more than 500,000 ounces of gold annually by 2030.
Write to Aaliyah Rogan at Mining.com.au
Images: Liberty Gold
