Liberty Gold Announces Signing of Definitive Option Agreement on the Baxter Spring Gold Project, Nevada
VANCOUVER, British Columbia, Aug. 28, 2020 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (LGD-TSX) (“Liberty Gold” or the “Company”) is pleased to announce it has signed a definitive agreement (the
“Agreement”) for the option of its 100% interest in the Baxter Spring Gold project, located in central Nevada (“Baxter Spring”) to BlueBird Battery Metals Inc., (BATT-TSX.V)
Pursuant to the terms of the Agreement, Liberty Gold will receive in return for its interest in Baxter Spring an aggregate of US$500,000 in cash plus common shares in BlueBird (“BlueBird Shares”) equal to 19.5% of the issued and outstanding BlueBird Shares on a non-diluted basis (the “Transaction”).
Terms of the Agreement:
Closing of the Transaction is subject to completion of a financing by BlueBird and other customary conditions including approval by the TSX Venture Exchange (the “TSXV”).
BlueBird shall have the exclusive right to acquire a 100% in Baxter Spring by satisfying the following terms (except for the Final Payment):
making cash payments totalling US$500,000 in accordance with the following schedule:
|(i)||US$250,000 on the closing date; and|
|(ii)||US$250,000 on or before the first anniversary of the date of TSXV approval of the Transaction (the “Final Payment”);|
issuing that number of BlueBird Shares that are equal to 19.5% of the issued and outstanding BlueBird Shares, on a post-financing and post-consolidation basis (subject to a one year hold
|(c)||granting a 2% Net Smelter Return Royalty (“NSR”) with no buyout rights;|
|(d)||completing a minimum C$2 million financing and consolidation of its common shares.1|
Liberty Gold shall retain a 36 month right to reacquire a 35% interest in Baxter Spring for US$1,000,000 (“Back-in Right”). Should Liberty Gold exercise the Back-in Right, BlueBird has been granted an option to repurchase 5% of Liberty Gold’s interest by completion of a pre-feasibility study.