Liberty Gold Announces Receipt of Initial Option Payments Under Definitive Purchase Option Agreement for the Sale of its Share of the Kinsley Mountain Gold Project, Nevada

VANCOUVER, British Columbia, June 02, 2020 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (LGD-TSX) (“Liberty Gold” or the “Company”) is pleased to announce the receipt of the initial option payments (the “Initial Option Payments”) under the definitive purchase option agreement (the “Agreement”) (see press release of May 4, 2020) for the sale of its 79.9% interest in the Kinsley Mountain gold deposit, a Carlin-style gold deposit in eastern in Nevada (“Kinsley”) to Barrian Mining Corp. (TSX-V: BARI)) (“Barrian”).

Barrian has announced a change to its name and corresponding ticker symbol to New Placer Dome Gold Corp. (“New Placer Dome”) and TSX-V:NGLD, respectively, concurrently with making the Initial Option Payments to Liberty Gold.

Pursuant to the terms of the Agreement, Liberty Gold has or will receive in total consideration for its interest in Kinsley, an aggregate US$6,250,000 in cash and shares plus a 9.9% interest in New Placer Dome (the “Transaction”). The consideration will be paid in three stages over a two-year period as follows:

Received by Liberty Gold as part of the Initial Option Payments:

• US$1,250,000
• US$124,570 in repayment of the surety bond deposit.
• 8,844,124 common shares in New Placer Dome, representing 9.9% of New Placer Dome’s issued and outstanding common shares, subject to a contractual 12 month hold period.

Pending payments:

• US$2,500,000 on or before the 1^st anniversary of the final approval of the Transaction by the TSX-V.
• US$2,500,000 in common shares of New Placer Dome on or before the 2^nd anniversary of the final approval of the Transaction by the TSX-V (subject to a 4-month statutory hold period).
• A 1% Net Smelter Return Royalty (“NSR”) on the acquired interest in Kinsley, where New Placer Dome, at its sole discretion, has the right to re-purchase up to one-half percent (0.5%) of the NSR royalty upon payment of US$500,000.

Cal Everett, President and CEO of Liberty Gold will join New Placer Dome as senior financial advisor.

Proceeds received by Liberty Gold will be added to the Company treasury to accelerate exploration activities on the 100% owned Black Pine gold project in Southern Idaho.

Since April 1, 2020, two drills have been operating at Black Pine building off of the two high grade oxide gold discoveries from 2019.  A third drill has been mobilized to site. A regional drill test has also been initiated to probe a permitted 7.3 square kilometre area where historical drilling has intercepted oxide gold in numerous locations. Historical drill holes average approximately 92 metres long.  Current drilling is testing the full favourable sedimentary host rock assemblage to depth with drill holes up to 350 metres in length.