TORONTO, June 26, 2012 /CNW/ - Liberty Mines Inc. ("Liberty" or the "Company") announced today that it has filed a preliminary short form prospectus with the securities regulatory authorities in the provinces of British Columbia, Alberta and Ontario in connection with a fully marketed offering (the "Offering") of units of the Company (the "Units") to raise gross proceeds of $10,000,000. The Offering is being conducted by Canaccord Genuity Corp. (the "Agent"). Each Unit will consist of one common share of the Company (each a "Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one common share at a fixed exercise price for a period of 24 months following the date of closing of the Offering.
Final pricing and the determination of the number of Units to be sold pursuant to the Offering will be determined in the context of the market and will occur immediately prior to the filing of the final short form prospectus in respect of the Offering.
Liberty has granted the Agent an option to sell up to an additional 15% of the number of units sold in the Offering, exercisable at any time following the closing of the Offering for a period of 30 days.
Jien International Investment Limited ("JIIL") has indicated that it will subscribe for 60% of the Offering in order to maintain its 60% controlling interest in the common shares of the Company.
The net proceeds of the Offering will be used to offset the costs and expenses that the Company has incurred in bringing its tailings facility into compliance and by restarting production at the McWatters Mine and the Redstone Mill and for general working capital purposes.
Closing of the Offering is subject to certain conditions, including but not limited to, the execution of a definitive agency agreement with the Agent and the receipt of all necessary securities regulatory approvals, including the approval of the Toronto Stock Exchange.
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.
For further information:
Chris Stewart, President & CEO
416 815 0700 ext. 243