Liberty Mines Amends Financing Agreements
TORONTO, Dec. 31, 2012 /CNW/ - Liberty Mines Inc. (LBE:TSX) ("Liberty" or the "Company") today announced that it has reached an agreement to extend the maturity date to March 14, 2014 for two separate loan and restructuring agreements previously signed with Jien International Investment Ltd.
"We are very pleased with Jien's continued support and commitment to Liberty," said Chris Stewart, President and CEO of Liberty Mines. "Extending the terms of our financing agreements is an important step towards ensuring our long-term viability, particularly with the recovery of nickel prices expected in the near term."
The loan agreement was originally signed on June 30, 2011, and provided Liberty a fully-drawn term loan of C$28,914,849.06 and a fully-drawn revolving loan in the principal amount of C$20,000,000. Its original maturity date was December 31, 2012.
The restructuring agreement, which was dated September 7, 2012, included provisions for restructuring of further advances to the Company from Jien International Investment Ltd. during 2012. The restructuring agreement also included a C$5,000,000 credit facility, of which C$1,000,000 has been extended to Liberty to date and which expires on December 31, 2012.
The above transactions are subject to the receipt of all required regulatory approvals.
For additional information on the Company's outstanding debt obligations, please see its Financial Statements and Management Discussion and Analysis for the nine months ended September 30, 2012 which are available at www.sedar.com.
Jien International Investment Ltd is a wholly-owned subsidiary of Jilin Jien Nickel Industry Co., an integrated nonferrous metals enterprise principally involved in the production and sale of nickel sulfate, nickel matte, electrolytic nickel, nickel hydroxide, nickel chloride, copper sulfate, copper concentrate and sulfuric acid. Combined, Jien International Investment and Jilin Jien Nickel Industry Co. own approximately 60 percent of Liberty's total number of outstanding shares.
About Liberty Mines Inc.
Liberty Mines Inc. is a mid-tier producer of nickel and is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada. It owns and operates the only nickel concentrator in the Shaw Dome, a prospective nickel belt region near Timmins, Ontario. With a new management team in place, Liberty is focused on growth initiatives not only through a more aggressive exploration program on its current properties but also through potential acquisition or partnership opportunities beyond its core Timmins area projects.
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 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; regulatory approvals; receipt of mining permits and leases; and assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.
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