Liberty Mines Enters Agreement to Acquire Snow Lake Gold Mine
TORONTO, ONTARIO -- (Marketwired) -- 10/02/13 -- Liberty Mines Inc.
(TSX:LBE) has entered into a definitive agreement with QMX Gold
Corporation to acquire the Snow Lake gold project in Manitoba (the
"Snow Lake Property"). Upon completion of the transaction, which is
expected to close on or about November 25, 2013, Liberty Mines will
have the following profile:
-- Immediate medium-term growth potential targeting 80,000 ounces of gold
per year at the Snow Lake Property, with projected total cash costs
estimated at CDN$852 per ounce gold.
-- Measured and indicated resources of 5,471,000 tonnes grading 4.14 g/t Au
for 728,000 oz Au; and additional inferred resources of 2,367,000 tonnes
grading 4.43 g/t Au for 336,700 oz Au (see Press Release dated August
-- Proven and probable reserves from these resources are calculated to be
3,477,000 tonnes grading 4.04 g/t Au for 451,900 oz Au (See Press
Release dated August 28, 2013).
-- Two mills (1,500 tpd capacity Redstone Mill in Timmins, Ontario and
2,150 tpd capacity Snow Lake Mill in Snow Lake, Manitoba) strategically
located in two leading Canadian gold districts providing a platform for
regional consolidation and future production growth, including custom
The Snow Lake Property's assets include the New Britannia Mine with
associated plant, infrastructure, and equipment including a fully
permitted 2,150 tonne per day modern mill and tailings facility. The
property consists of approximately 104 km2 of mineral claims and
leases containing over ten known mineralized zones, including four
gold deposits with 43-101 resources, three of which are historic
production sites. The Snow Lake camp is highly prospective for gold
mineralization and hosts the Lalor gold project, owned by HudBay
Minerals Inc. For additional information relating to the Snow Lake
Property please see Liberty's press release dated August 28, 2013
filed on SEDAR and the Feasibility Study dated December 14, 2010
entitled "Technical Report NI 43-101 Feasibility Study, Snow Lake
Mine Re-activation Project", prepared for QMX which is available
under QMX's company profile on www.sedar.com.
Liberty Mines has entered into a definitive agreement with QMX Gold
Corporation to acquire a 100% interest in the Snow Lake Property
through the acquisition of QMX's wholly-owned subsidiary, in
consideration for a cash payment of USD$20,000,000 to QMX. A deposit
in the amount of USD$1,000,000 shall be released from escrow and paid
to QMX in the coming days. The remaining purchase price of
USD$19,000,000 shall be paid on upon closing of the transaction which
is expected to occur on or before November 25, 2013. Liberty may
extend closing until January 14, 2014 by paying to QMX an extension
fee in the amount of USD$100,000. Closing of the acquisition remains
subject to Liberty Mines receiving all necessary government and
regulatory approvals in Canada and China, including shareholder
approval, and securing the financing necessary to complete the
The Corporation is also pleased to announce that Mr. Geoff Stanley
has been appointed to the Board of Directors of the Corporation to
assist with its current repositioning. Mr. Stanley has over 25 years
of experience in the mining equities business with a number of major
global institutions including UBS, Goldman Sachs, and the Bank of
Montreal. Throughout his career his principal role has been in
equities analysis, where he was a highly ranked in the Australian, US
and Canadian markets. Formerly the number one ranked metals and
mining analyst in the North American market (Wall Street Journal),
Geoff is now active as a director of resource companies operating in
the gold, base metals, and bulk commodities. Geoff is a Fellow of the
Society of Economic Geologists, Fellow of the AusIMM, and a member of
the CIM, and is also a former president of the Metals Analysts Group
of New York. He is qualified with a triple major in geology,
geophysics and physical geography, and a B.Sc (Hons) in geology from
the University of Tasmania. Mr. Stanley replaces Mr. Bruce Humphrey
who has resigned from the Board.
In addition, Ms. Jennifer Wagner has been appointed the Corporate
Secretary of the Corporation. Ms. Wagner is a corporate securities
lawyer who works as a legal consultant to several publicly traded
companies in the mining industry. Previously, Ms. Wagner practiced
securities law at a major Canadian law firm. She obtained her
Bachelor of Laws from the University of Windsor and her Bachelor of
Arts from McGill University in Montreal.
The technical and scientific content of this press release has been
reviewed and approved by David M. Rigg, P.Geo. and qualified person
under NI 43-101. As President and CEO of Liberty, Mr. Rigg is not
About Liberty Mines Inc.
Liberty Mines Inc. owns the only nickel concentrator in the Shaw Dome
area, a prospective nickel belt region near Timmins, Ontario. Liberty
Mines also owns two former producing nickel mines and a prospective
land package near Timmins, Ontario.
This document includes "forward looking statements", as defined under
applicable securities laws. All statements, other than statements of
historical fact, including statements regarding the impact of the
acquisition on Liberty Mines, the timing of completion of
transaction, future plans and objectives of Liberty Mines, and the
timing and completion of necessary financing and its consequences 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 Mines' expectations are: insolvency risks;
regulatory approvals; environmental risks and other risks inherent in
the mining industry, as described in Liberty Mines' public filings.
Forward-looking statements speak only as of the date on which they
are made. Liberty does not undertake to publicly update any such
statement, except where required by securities regulations.
Accordingly, readers should not place undue reliance on
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained here.
Liberty Mines Inc.
President & CEO
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