Liberty Gold Corp. (TSX:LGD; OTCQX:LGDTF) ("Liberty Gold" or the
"Company"), is pleased to announce its financial and operating
results for the year ended December 31, 2020. All amounts are
presented in United States dollars (“
USD”) unless
otherwise stated.
Liberty Gold is focused on advancing a pipeline
of Carlin-Style gold deposits in the Great Basin, U.S.A., a
mining-friendly jurisdiction that is home to large-scale oxide gold
systems ideal for open-pit heap leach mining. The Great Basin
covers portions of the states of Nevada, Utah and Idaho. The
Company has a proven track-record in discovery and building value
in this region.
HIGHLIGHTS FROM 2020 AND SUBSEQUENT
EVENTS:
We have monetized a number of our non-core
assets through sale or option1:
-
Halilağa: We closed the sale of the Halilağa porphyry copper gold
deposit in Turkey and received the first of the three staged
payments of $6.0 million. A further two $6.0 million installments
are bank guaranteed and will be received on August 15, 2021 and
August 15, 2022, respectively.
- Kinsley: We
received 8,844,124 common shares in New Placer Dome Gold Corp
(TSXV:NGLD) (“New Placer Dome”) and $1.25 million as the initial
option payment, on the option of the Kinsley Mountain gold deposit
(“Kinsley”). Under the terms of the option agreement, a further
$2.5 million is expected in June 2021, and a further $2.5 million
in common shares of New Placer Dome is expected in June 2022.
- Baxter Spring:
Pursuant to a purchase-option agreement, we received $0.25 million
in cash and 14,986,890 common shares in Huntsman Exploration Inc.
(TSXV:HMAN) (“Huntsman”) equal to 19.5% of the issued and
outstanding shares in Huntsman. A further $250,000 is due on
November 12, 2021.
- Regent: In March
2020, we sold our 15% net profit interest (“NPI”) in the Regent
property in Nevada to Ely Gold Royalties Inc. (TSXV:ELY) (“Ely”)
for a total consideration of $0.80 million and 2,000,000 warrants
to purchase common shares in Ely (“Ely Warrants”). The Ely Warrants
are each exercisable for C$0.43 and expire on December 18,
2021.
- Portfolio
Properties: On March 3, 2021 we closed the sale of three of our
100% owned portfolio properties, consisting of Anchor, Stateline
and Sandy, as well as three of our 49% owned properties (Brik,
Easter and Viper), to Raindrop Ventures Inc. (CSE:RAYN)
(“Raindrop”) for a total consideration of $0.05 million and
4,013,406 common shares of Raindrop, representing 9.9% of
Raindrop’s issued and outstanding common shares. We retained a 1.5%
net smelter return (“NSR”) on Anchor, Stateline and Sandy.
We have received a total of C$8.1 million from
the exercise of all 12,469,212 Liberty Gold common share purchase
warrants (“Warrants”) issued pursuant to the bought deal
financing that closed on January 26, 2018; the Warrants were
each exercisable for C$0.652. C$5.05 million was received during
2020, and C$2.8 million received during 2021.
At Black Pine we:
- Increased our strategic land
holding by staking 201 new claims covering a total of 16.5 square
kilometres (“km2”), increasing the size of the core claim block as
well as adding a new area to the west of the original claims for a
total of 47.8 km2.3
- Received approval of an amendment
to our Plan of Operations allowing us to access to an additional
4.6 km2 including key strategic drill targets, as well as an
easement to a water well.4
- Reported weighted average 82.1%
gold extraction in phase 2 of metallurgical column testing, with a
range up to 94.5% gold extraction.5
- Discovered or confirmed six new
mineralised zones. The most significant new discovery is the D-3
zone, situated immediately west of and under the D-1 zone.
- Released further results from
drilling on a newly-defined portion of the D-1 and new D-3 and F
zones. Highlights include6:
- D-3 zone:
- 1.98 grams per tonne of gold
(“g/t Au”) over 33.5 m, including 3.93 g/t Au over
15.2 m, and 1.11 g/t Au over 30.5 m in LBP127.
- 1.44 g/t Au over 96.0 m, including
1.95 g/t Au over 32.0 m and including 5.31 g/t Au over 1.5 m and
1.86 g/t Au over 29.0 m in LBP152
- 1.43 g/t Au over 9.1 m and 1.20 g/t
Au over 67.1 m, including 2.57 g/t Au over 16.8 m and including
8.51 g/t Au over 3.0 m in LBP138.
- 1.50 g/t Au over 27.4 m and 0.62
g/t Au over 7.6 m in LBP203.
- 1.01 g/t Au over 62.5 m, including
1.94 g/t Au over 25.9 m in LBP189.
- 0.98 g/t Au over 80.8 m, including
2.32 g/t Au over 18.3 m and 2.19 g/t Au over 7.6 m in LBP169.
- D-1 Southeast Extension zone:
- 4.34 g/t Au over 22.9 m, including
10.8 g/t Au over 6.1 m in LBP258.
- 1.26 g/t Au over 10.7 m, including
1.59 g/t Au over 7.6 m in LBP176.
- 1.18 g/t Au over 16.8 m, including
1.82 g/t Au over 7.6 m in LBP173.
- 1.06 g/t Au over 32.0 m, including
2.34 g/t Au over 10.7 m in LBP168.
- F zone:
- 2.21 g/t Au over 22.9 m, including
7.42 g/t Au over 4.6 m in LBP149.
- 0.43 g/t Au over 74.7 m, including
in LBP227.
- 0.64 g/t Au over 62.5 m, including
1.33 g/t Au over 10.7 m in LBP229.
- M zone:
- 1.26 g/t Au over 38.1 m, including
1.74 g/t Au over 22.9 m in LBP256.
- Released results
from five large diameter core holes drilled to support phase 3
metallurgical column testing from the D-1, D-2 and D-3 zones
include7:
- 3.32 g/t Au over 47.4 m, including
12.5 g/t Au over 5.8 m in LBP214C.
- 3.62 g/t Au over 8.1 m and 1.27 g/t
Au over 54.2 m, including 2.51 g/t Au over 17.0 m in LBP222C.
- 1.12 g/t Au over 13.4 m and 3.16
g/t Au over 32.0 m in LBP207C.
- 1.44 g/t Au over 16.5 m and 1.36
g/t Au over 15.2 m and 1.23 g/t Au over 7.6 m in LBP197C.
SELECTED FINANCIAL DATA
The following selected financial data is derived
from our Annual Financial Statements and related notes thereto (the
“Annual Financial Statements”) for the year ended December 31, 2020
as prepared in accordance with International Accounting Standards.
A copy of the Annual Financial Statements is available on the
Company’s website at www.libertygold.ca or on SEDAR at
www.sedar.com.
The information in the tables below is presented
in $000s except per share data:
|
Year ended December 31, |
|
|
2020 |
|
2019 |
2018 |
|
Attributable to shareholders: |
|
|
|
Income (loss) for the period |
$ |
7,482 |
$ |
(11,583 |
) |
$ |
(11,169 |
) |
Income (loss) and comprehensive income (loss) for the period |
$ |
8,679 |
$ |
(11,421 |
) |
$ |
(12,340 |
) |
Basic and diluted income (loss) per share |
$ |
0.03 |
$ |
(0.05 |
) |
$ |
(0.06 |
) |
|
As at December 31, |
|
2020 |
|
2019 |
|
2018 |
Cash and short-term investments |
$ |
16,832 |
$ |
14,464 |
$ |
7,878 |
Working capital |
$ |
17,977 |
$ |
11,493 |
$ |
7,477 |
Total assets |
$ |
60,394 |
$ |
42,109 |
$ |
35,081 |
Current liabilities |
$ |
5,884 |
$ |
5,281 |
$ |
612 |
Non-current liabilities |
$ |
2,137 |
$ |
1,998 |
$ |
1,535 |
Shareholders’ equity |
$ |
44,176 |
$ |
26,192 |
$ |
24,169 |
ABOUT LIBERTY GOLDLiberty 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. We know the Great Basin and are driven
to discover and advance big gold deposits that can be mined
profitably in open-pit scenarios. Our flagship projects are
Black Pine in Idaho and Goldstrike in Utah, both past-producing
open-pit mines, where previous operators only scratched the
surface.
For more information, visit www.libertygold.ca
or contact:
Susie Bell, Manager, Investor
Relations Phone: 604-632-4677 or Toll Free
1-877-632-4677info@libertygold.ca
All statements in this press release, other
than statements of historical fact, are "forward-looking
information" with respect to Liberty Gold within the meaning of
applicable securities laws, including statements that address
potential quantity and/or grade of minerals, potential size and
expansion of a mineralized zone, proposed timing of exploration and
development plans. Forward-looking information is often, but not
always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "planned", "expect", "project",
"predict", "potential", "targeting", "intends", "believe",
"potential", and similar expressions, or describes a "goal", or
variation of such words and phrases or state that certain actions,
events or results "may", "should", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking information
is not a guarantee of future performance and is based upon a number
of estimates and assumptions of management at the date the
statements are made including, among others, assumptions about
future prices of gold, and other metal prices, currency exchange
rates and interest rates, favourable operating conditions,
political stability, including any impacts due to the recent
pandemic of the novel coronavirus (COVID-19), obtaining
governmental approvals and any financing on time, the receipt of
future staged payments relating to the option on Baxter Spring and
on the sale of Halilağa, obtaining renewals for existing licenses
and permits and obtaining required licenses and permits, labour
stability, stability in market conditions, availability of
equipment, accuracy of any mineral resources, the availability of
drill rigs, the accuracy of a preliminary economic assessment,
successful resolution of disputes and anticipated costs and
expenditures. Many assumptions are based on factors and events
that are not within the control of Liberty Gold and there is no
assurance they will prove to be correct.
Such forward-looking information, involves known
and unknown risks, which may cause the actual results to be
materially different from any future results expressed or implied
by such forward-looking information, including, risks related to
the interpretation of results and/or the reliance on technical
information provided by third parties as related to the Company’s
mineral property interests; changes in project parameters as plans
continue to be refined; current economic conditions; future prices
of commodities; possible variations in grade or recovery rates; the
costs and timing of the development of new deposits; failure of
equipment or processes to operate as anticipated; the failure of
contracted parties to perform; the timing and success of
exploration activities generally; delays in permitting; including
any restrictions due to the recent pandemic of the novel
coronavirus (COVID-19), possible claims against the Company; labour
disputes and other risks of the mining industry; delays in
obtaining governmental approvals, financing, or in the completion
of exploration, as well as those factors discussed in the Annual
Information Form of the Company dated March 26, 2021 in the section
entitled "Risk Factors", under Liberty Gold’s SEDAR profile
at www.sedar.com.
Although Liberty Gold has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements.
Liberty Gold disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise unless required by law.
1 See press releases dated August 12, 2020; June 2, 2020; August
28, 2020 and March 12, 2020.2 See press release dated January 28,
2021.3 See press release dated June 10, 2020.4 See press release
dated February 18, 2021.5 See press release dated August 18, 20206
See press releases dated: June 23, 2020; July 14, 2020; July 28,
2020; September 29,2020; November 10, 2020; December 22, 2020 and
March 24, 2020.7 See press release dated January 12, 2021
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