Connect with us

Hi, what are you looking for?

Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Liberty Gold successfully negotiates reduced NSR for Black Pine Project in Idaho

Liberty agreed to purchase the existing 0.5 per cent NSR from a private company for USD$3.5 million and 200,000 common shares

Liberty Gold successfully negotiates reduced NSR for Black Pine Project in Idaho
The southern view of Liberty's C-D pit at Black Pine. Image via Liberty Gold.

Liberty Gold Corp. (TSX:LGD) (OTCQX:LGDTF) has successfully negotiated an option to reduce its royalty interest from the present 0.5 per cent net smelter royalty (NSR) to 0.25 per cent NSR on its Black Pine Oxide Gold Project in southeastern Idaho.

Announced on Monday, the company has also engaged in a non-brokered private placement to raise funds of up to USD$5.7 million, including a USD$5 million investment by Wheaton Precious Metals Corp. (TSX: WPM) (NYSE: WPM) (LSE: WPM).

Liberty agreed to purchase the existing 0.5 per cent NSR from a private company for USD$3.5 million and 200,000 common shares. Simultaneously, the company reached an agreement with an affiliate of Wheaton to establish a new 0.5 per cent NSR for USD$3.6 million.

This royalty will cover all claims associated with the Black Pine project. Furthermore, the company also a secured a buyback options where it can repurchase half of this royalty for USD$3.6 million at any time before either production at Black Pine starts, or Jan. 1, 2030.

Additionally, Wheaton will hold a Right of First Refusal for any future royalties, streams, or pre-payment agreements involving precious metals related to the Black Pine project.

“It is a rare occasion to have an opportunity to reduce the royalty interest of a mining project, particularly one as high quality and favourably located as Black Pine,” said Jason Attew, the president and CEO of Liberty Gold.

“This option further de-risks the future development of Black Pine and would result in more of the project economics being attributable to Liberty Gold’s shareholders.”

The prospective private placement involves the issuance of a maximum of 22.9 million shares at a price of CAD$0.34 per share, and aims to generate up to USD$5.7 million.

The funds raised through this private placement will be allocated towards various purposes, including exploration, development, economic studies and permitting programs for the company’s projects situated in the Great Basin. Additionally, a portion of the proceeds will be earmarked for general working capital needs.

The offering, along with the royalty transactions, is anticipated to conclude September 15, 2023.

Read more: NevGold discovers new untested areas at Limousine Butte

Read more: NevGold discovers oxide gold from the surface at Nutmeg Mountain

Idaho is an attractive destination for gold miners

Idaho’s rich history of gold mining, dating back to the 1860s, has established it as a region abundant in gold resources. The state boasts numerous active and historic gold mines, making it a compelling location for both gold exploration and investment. Investors are drawn to the prospect of tapping into this well-established gold mining heritage.

Idaho offers a stable political and regulatory environment for mining and investment. This stability can provide investors with a sense of security and confidence, knowing that their investments are situated in a jurisdiction known for its political consistency.

Many gold mining projects in Idaho benefit from their proximity to existing infrastructure, including well-maintained roads, power sources and readily available water resources. This strategic positioning can significantly reduce the costs associated with exploration and project development, making Idaho an attractive choice for mining companies and investors alike.

A few companies taking advantage of Idaho’s abundant resources include:

Hecla Mining Company (NYSE: HL), a gold, silver and precious metals mining company based in Coeur d’Alene, Idaho.

Revival Gold Inc. (TSXV: RVG) (OTCQX: RVLGF) in which metallurgical testing completed last week on sulphide material returned gold recoveries of 93 per cent to concentrate from a composite sample grading 4.6 grams per ton gold.

NevGold Corp. (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) which recently completed its maiden mineral resource estimate on its Nutmeg Mountain property in Idaho.


NevGold is a sponsor of Mugglehead news coverage


Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Joseph Morton on Twitter

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Around 250 representatives from the state's mining industry gathered in Cody this week


Royalties are dispersed in projects held by West African Resources, AngloGold Ashanti, Libero Copper & Gold and Calibre Mining


Presence of Chinese businessmen in Nicaragua's mining sector is part of the dictatorship’s strategy to evade U.S. sanctions


The initial 2024 drill results tested new targets up to hundreds of meters from the high-grade ore control reverse circulation holes