- Completes Internal Pre-Feasibility Study on Hart Project -
TORONTO, Jan. 3, 2012 /CNW/ - Liberty Mines Inc. (TSX: LBE) ("Liberty"
or the "Company") today announced that it has executed its right to
purchase half of the two percent Hart net smelter royalty (NSR) from
Canadian Arrow Mines (CAM) for a lump sum payment of CDN $1 million.
"Restructuring our Hart NSR represents a strategic decision to minimize
royalty payments as we unlock the property's full potential," said
Chris Stewart, President and CEO of Liberty Mines. "As our confidence
in the Hart Project increases, we want to ensure we are taking all
appropriate steps to ensure we are maximizing the project's full value
for all of our stakeholders."
In 2006, Liberty Mines entered into an Option and Joint Venture
Agreement with CAM. Under the terms of this agreement, Liberty
optioned 100% ownership of the Hart Claims from CAM in exchange for
various payments as well as a two percent NSR.
Also in accordance with the agreement, Liberty Mines was given the right
to purchase the first one percent of the NSR for a lump sum payment of
CDN $1.0 million. The remaining NSR will require negotiations between
both parties to arrive at a mutually acceptable purchase price.
Internal Pre-Feasibility Study
Liberty also announced that it has completed an internal pre-feasibility
study on the Hart Project. Based on the results of this study, Liberty
is moving ahead with a feasibility study on the Hart Project. The
results from this detailed study are expected by mid-2012.
"We are very encouraged by the preliminary results of our internal
pre-feasibility study," added Mr. Stewart. "The results support our
efforts to expand our life of mine through strategic exploration
activities on our properties in Timmins."
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
SOURCE Liberty Mines Inc.
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