Liberty Financing Increased
09:00 EST Friday, January 19, 2007
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
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FSC / Press Release
Liberty Financing Increased
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Timmins, Ontario CANADA, January 19, 2007 /FSC/ - Liberty Mines Inc. (LBE - TSX Venture), has increased its private placement financing announced on Jan. 17, 2007. To partially accommodate the demand from investors, the financing is amended to consist of approximately $5 million of flow-through common shares and approximately $4.5 million of units for gross proceeds of approximately $9.5 million. Salman Partners Inc. acted as lead agent for the offering.
Accompanying this offering is an additional private placement arranged by Liberty which also consists of flow-through common shares and units for gross proceeds of approximately $2.5-million, which is also amended.
Each Flow-Through Common Share will consist of one common share issued on a "flow-through" basis at a price of CAD $2.70. Each Unit, priced at $2.50, 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 $2.80. The warrants are subject to an acceleration clause whereby if the closing trading price of the Corporation's common shares is $3.75 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 (including Flow-Through Common Shares and Units sold pursuant to the exercise of the over-subscription option). The agent's warrants will be exercisable to purchase one common share of the Corporation at a price of CAD $2.80 for a period of twenty-four months from closing, subject to the acceleration clause.
The offering is scheduled to close on or about February 8, 2007 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 Galata projects and surrounding areas in Ontario. The Units' proceeds will be used for capital purchases at the Redstone mine, shaft and mill.
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 3-07
Source: Liberty Mines Inc. (TSX-V: LBE) http:// www.libertymines.com
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