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 from registration..
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.
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