Liberty Financing Oversubscribed
15:22 EDT Friday, October 13, 2006
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FSC / Press Release
Liberty Financing Oversubscribed
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Timmins, Ontario CANADA, October 13, 2006 /FSC/ - Liberty Mines Inc. (LBE - TSX Venture), ("Liberty or the Corporation") is pleased to announce that it has received an oversubscription by institutional investors to fill the private placement financing announced on October 6, 2006. To partially accommodate the overwhelming response from the investors, the financing is amended to consist of CAD $5,000,000 of Flow-Through Common Shares and CAD $3,000,000 of Units for gross proceeds of CAD $8,000,000. Salman Partners Inc acted as lead agent for a syndicate of agents including MGI Securities Inc.
Accompanying this Offering is an additional private placement arranged by Liberty which also consists of Flow-Through Common Shares and Units for gross proceeds up to $1,000,000, which is not amended.
Each Flow-Through Common Share will consist of one common share issued on a "flow-through" basis at a price of CAD $0.90. Each Unit, priced at CAD $0.85, will consist of one common share and one-half common share purchase warrant. Each full warrant shall entitle the purchaser to purchase, at any time within twenty-four months from closing, one common share of the Corporation at a price of CAD $1.00. The warrants are subject to an acceleration clause whereby if the closing trading price of the Corporation's common shares is $1.50 or more for a period of 20 consecutive trading days, the Corporation will have the option to require the earlier exercise of the warrants within 30 days of formal notice from the company.
In consideration for their services, the agents will receive a cash commission equal to 7.5% of the gross proceeds from the offering and agent's warrants equal to 8% of the aggregate number of Flow-Through Common Shares and Units sold pursuant to the Offering. The agent's warrants will be exercisable to purchase one common share of the Corporation at a price of CAD $1.00 for a period of twenty-four months from closing, subject to the acceleration clause.
The offering is scheduled to close on October 23, 2006 and is subject to certain conditions including, but not limited to, receipt of all required regulatory approvals. The securities issued by Liberty in connection with these offerings are subject to a 4-month "hold period" as prescribed by the TSX Venture Exchange.
The net proceeds of the Flow-Through Common Shares part of the Offering will be used to fund exploration and development activities at the Redstone, McWatters, Hart and McAra Lake projects and surrounding areas in Ontario. The Units' proceeds will be used for construction, development and working capital purposes.
About Liberty Mines Inc.
Liberty Mines Inc. is a mineral exploration and development company with a focus on the development and production of nickel, cobalt and platinum group metals from its properties in Ontario.
CAUTIONARY STATEMENT
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward looking statements". All statements other than statements of historical fact included in this release, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Liberty, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Liberty's expectations are exploration risks, commodity prices, assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators.
For further information please contact:
Dr. Gary Nash, PhD (Physics), President & CEO
Liberty Mines Inc.
Phone (416) 238-9736 Fax 780-437-7898
e-mail: gnash@libertymines.com
Press Release 21-06
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