Proceeds slated to advance the company's gold exploration activities
By Devika Patel
Knoxville, Tenn., June 19 - Liberty Gold Corp. said it plans a $15 million units financing with American Gold Holdings Ltd. The company has already drawn down $1.08 million.
The company will sell $15 million units of one common share and one warrant until Oct. 11, 2013, in advances of up to $1 million and in integral multiples of $25,000. The completion date may be extended by an additional year and the proceeds may be increased by an additional $5 million.
The purchase price of the units will be equal to the higher of $0.45 or 90% of the volume-weighted average of the closing price of the stock, for the five banking days immediately preceding the date of the notice.
Each three-year warrant will be exercisable at 130% of the unit price.
Proceeds will be used to advance the company's gold exploration activities, for operating expenses, acquisitions, working capital and general corporate activities.
"This funding is exactly what Liberty Gold needs to take our gold exploration efforts to the next level," president and chief executive officer Lynn Harrison said in a press release. "And while we now find ourselves to be well financed, we're committed, as always, to utilizing the assets we have at our disposal in a cost effective manner so we can advance our projects as far as possible while continuing to pass on maximum value to our shareholders."
The gold and precious metals exploration company is based in Phoenix.
| Issuer: | Liberty Gold Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $15 million
|
| Tenor: | Oct. 11, 2013
|
| Price: | Higher of either $0.45 or 90% of the volume weighted average of the closing price of the stock, for the five banking days immediately preceding the date of the notice
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | 130% of the unit price
|
| Investor: | American Gold Holdings Ltd.
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| Settlement date: | June 19 (for $1,075,000)
|
| Stock symbol: | OTCBB: LBGO
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| Stock price: | $0.97 at close June 18
|
| Market capitalization: | $85.36 million
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