TORONTO, Dec. 31, 2012 /CNW/ - Liberty Mines Inc. (LBE:TSX) ("Liberty"
or the "Company") today announced that it has reached an agreement to
extend the maturity date to March 14, 2014 for two separate loan and
restructuring agreements previously signed with Jien International
"We are very pleased with Jien's continued support and commitment to
Liberty," said Chris Stewart, President and CEO of Liberty Mines.
"Extending the terms of our financing agreements is an important step
towards ensuring our long-term viability, particularly with the
recovery of nickel prices expected in the near term."
The loan agreement was originally signed on June 30, 2011, and provided
Liberty a fully-drawn term loan of C$28,914,849.06 and a fully-drawn
revolving loan in the principal amount of C$20,000,000. Its original
maturity date was December 31, 2012.
The restructuring agreement, which was dated September 7, 2012, included
provisions for restructuring of further advances to the Company from
Jien International Investment Ltd. during 2012. The restructuring
agreement also included a C$5,000,000 credit facility, of which
C$1,000,000 has been extended to Liberty to date and which expires on
December 31, 2012.
The above transactions are subject to the receipt of all required
For additional information on the Company's outstanding debt
obligations, please see its Financial Statements and Management
Discussion and Analysis for the nine months ended September 30, 2012
which are available at www.sedar.com.
Jien International Investment Ltd is a wholly-owned subsidiary of Jilin
Jien Nickel Industry Co., an integrated nonferrous metals enterprise
principally involved in the production and sale of nickel sulfate,
nickel matte, electrolytic nickel, nickel hydroxide, nickel chloride,
copper sulfate, copper concentrate and sulfuric acid. Combined, Jien
International Investment and Jilin Jien Nickel Industry Co. own
approximately 60 percent of Liberty's total number of outstanding
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.
For further information:
Chris Stewart, President & CEO
416 815 0700 ext. 243