TORONTO, June 26, 2012 /CNW/ - Liberty Mines Inc. ("Liberty" or the
"Company") wishes to advise that at the Company's annual meeting of
shareholders, to be held at the Ontario Bar Association, 20 Toronto
Street, Suite 200, Toronto, Ontario on Wednesday, June 27, 2012 at 4:00
p.m., the Company will be seeking shareholder approval to the extension
of the term of its existing debt facilities with Jien International
Investment Limited ("JIIL").
JIIL has agreed to extend the due date on two credit facilities. The
first facility has an outstanding principal amount of $48,914,849 plus
accrued and unpaid interest estimated to June 30, 2012 of $4,431,552,
which currently comes due on December 31, 2012 and the second facility
has an outstanding principal amount of US$19,348,828 with accrued and
unpaid interest estimated to June 30, 2012 of US$2,048,901, which
currently comes due on June 30, 2014. Both facilities bear interest at
10% per annum and are secured against the assets of the Company. JIIL
has agreed to extend the maturity date of both facilities to June 30,
2017 to provide the Company with the flexibility necessary to achieve
positive cash flow. Interest will continue to accrue at the rate of
10% per annum but no interest will be payable until June 30, 2014. The
Company will have the ability to repay any outstanding amount at any
time without penalty. In addition, the management information circular
mailed to shareholders in respect of the annual meeting (the
"Circular") discloses that the JIIL has agreed to provide up to an
additional $7,000,000 in funds to address the costs associated with
bringing the tailings facilities at the Redstone Mill into compliance
and to expand the facility in the future. Subsequent to mailing the
Circular JIIL agreed to increase this amount to $10,000,000. These
funds have been advanced on an interest free basis. For additional
information, please see the Circular which is available at www.sedar.com and the Company's website.
As JIIL owns 60% of the outstanding common shares of the Company, this
is a related party transaction under the rules of the Toronto Stock
Exchange and must be approved by a majority of the disinterested
shareholders voting at the meeting excluding the votes of JIIL and its
associates and affiliates.
At the meeting shareholders will be asked to approve the proposed slate
of seven directors consisting of Wu Shu, John Pinsent, Tao Li, Zhang
Shu, Kim Oishi, Chris Stewart and James Xiang. The Company is also
seeking ratification of BDO Dunwoody as the Corporation's auditors.
This press release does not constitute an offer of the securities
described herein in any jurisdiction. The securities described herein
have not been and will not be registered under the United States
Securities Act of 1933, as amended, or the securities laws of any state
and may not be offered or sold in the United States absent an exemption
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.
SOURCE Liberty Mines Inc.
For further information:
Chris Stewart, President & CEO
416 815 0700 ext. 243