Liberty Gold Announces Closing of Royalty Transactions and US$5.7 Million Private Placement and Welcomes Wheaton Precious Metals as a Strategic Shareholder

VANCOUVER, British Columbia, Sept. 18, 2023 (GLOBE NEWSWIRE) -- Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) (“Liberty Gold” or the “Company”) is pleased to announce the successful completion of the previously announced (see press release dated September 11, 2023) purchase and resale of a 0.5% Net Smelter Royalty (“NSR”) on the Company’s Black Pine Oxide Gold Project (“Black Pine”) in southeastern Idaho transactions (the “Royalty Transactions”) as well as the closing of the non-brokered private placement raising proceeds of US$5.7 million (the “Offering”).

ROYALTY TRANSACTIONS

The Company has acquired the existing 0.5% NSR from a private company on certain claims at Black Pine by delivering US$3.5 million in cash consideration and 200,000 common shares of the Company. Concurrently, the Company has granted an affiliate of Wheaton Precious Metals Corp. (“Wheaton”) a new 0.5% NSR (the “Royalty”) covering all claims comprising Black Pine for which the Company has received cash consideration of US$3.6 million. The Company has been granted an option to repurchase 50% of the Royalty for US$3.6 million at any point in time up to the earlier of commercial production at Black Pine or January 1, 2030. An affiliate of Wheaton has also been granted a Right of First Refusal on any royalties, streams or pre-pays that include precious metals pertaining to Black Pine.

PRIVATE PLACEMENT FINANCING

Under the Offering, the Company sold 22.9 million shares at C$0.34 per share for proceeds to the Company of US$5.7 million. Wheaton subscribed to US$5 million of the Offering and existing shareholders, management and directors of the Company subscribed to US$0.7 million of the Offering.

The Company intends to use the proceeds of the Offering for exploration, development, economic studies and permitting programs for the Company's projects in the Great Basin and for general working capital.

Certain directors, management and insiders of the Company (collectively, the “Interested Persons”) purchased or acquired direction and control over an aggregate of 558,820 common shares under the Offering. The Interested Persons are each considered a “related party” of Liberty Gold and the sale of common shares under the Offering to the Interested Persons constitutes a “related party transaction” within the meaning of MI 61-101 – Protection of Minority Security Holders in Special Transactions.