Ms. Susie Bell reports
LIBERTY GOLD ANNOUNCES SIGNING OF DEFINITIVE AGREEMENT TO SELL THE HALILAGA PORPHYRY COPPER GOLD DEPOSIT IN TURKEY
Liberty Gold Corp. has signed a share purchase agreement for the sale of its interest in the Halilaga copper-gold porphyry deposit, located in Biga province, northwest Turkey, to Cengiz Holdings AS.
Pursuant to the terms of the agreement, Liberty Gold and its joint venture partner, Teck Madencilik Sanayi Ticaret AS, a subsidiary of Teck Resources Ltd., have agreed to jointly sell their 100-per-cent interest in the company that holds the project to Cengiz for $55-million (U.S.) cash, to be paid in three stages over a two-year period. The consideration will be apportioned 60 per cent to Teck and 40 per cent to Liberty Gold, pro rata to their ownership interests. Cengiz will acquire the project by purchasing the shares in a Turkish corporation held by Teck and Liberty Gold. As a result of the transaction, Liberty Gold will receive a total of $22-million (U.S.).
Cengiz is active in the fields of construction, energy, mining, metallurgy and the chemicals/fertilizer industries. It began its first activities in the late 1970s in construction and is now one of Turkey's leading groups, with more than 12 main companies, 96,000 employees and an annual turnover of $6-billion (U.S.). Within Cengiz's mining and metallurgy operations, Cengiz's subsidiaries, Eti Bakir AS and Eti Aluminyum AS, own and operate copper, aluminium, antimony, phosphate and coal mines throughout Turkey and the Samsun cathode copper smelter facility, Seydisehir aluminium electrolysis facility, and Mazidagi fertilizer and metal recovery plants.
Terms of the agreement
Closing of the transaction is subject to customary conditions, including the approval of the Turkish Ministry of Energy and Natural Resources.
The $55-million (U.S.) purchase price will be paid in three stages as follows:
$35-million (U.S.) on the closing date ($14-million (U.S.) to Liberty Gold);
$10-million (U.S.) on the first anniversary of the closing date ($4-million (U.S.) to Liberty Gold);
$10-million (U.S.) on the second anniversary of the closing date ($4-million (U.S.) to Liberty Gold).
About Liberty Gold Corp.
Liberty Gold will continue to own 60 per cent of the TV Tower project in the Biga province that contains a large number of exploration targets ranging from high-sulphidation and low-sulphidation epithermal gold-silver and three drill-confirmed porphyry copper-gold discoveries.
Liberty Gold is focused on exploring the Great Basin of the United States, home to large-scale gold projects that are ideal for open-pit mining. This region is one of the most prolific gold-producing regions in the world and stretches across Nevada and into Idaho and Utah. The company's flagship projects are Goldstrike, Black Pine and Kinsley Mountain, all of which are past-producing open-pit mines, where previous operators only scratched the surface.
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