TORONTO, March 6, 2012 /CNW/ - Liberty Mines Inc. ("Liberty or the "Company") wishes to announce today that Jien International Investments Ltd. ("JIIL"), the Company's controlling shareholder, has agreed to provide a $5,000,000 loan. The purpose of the loan is to provide working capital for Liberty to address the timing around revenue payments from the resumption of mining activities. Liberty remains on target to restart their mining and milling operations in Timmins in Q1 of 2012.
This loan will bear interest at the rate of 10% per annum and will be secured against the assets of the Corporation. Interest will accrue over the term of the loan. The Loan will come due on December 31, 2013. The terms of the loan require that the Company make mandatory prepayments to the loan where Liberty raises capital in excess of certain thresholds.
This transaction constitutes a related party transaction under the rules of the Toronto Stock Exchange and Multilateral Instrument 61-101 ("NI 61-101"). The transaction is exempt from the minority approval requirements of is exempt from the minority shareholder approval requirements of NI 61-101 by virtue of section 5.7(f).
About Liberty Mines Inc.
Liberty Mines Inc. is a 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 Redstone nickel concentrator near Timmins Ontario.
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; equipment failures and shortage of supplies; 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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