Liberty Gold announces $10.5M financing led by RCF Opportunities Fund

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By CPE News

pcJ News Briefs – Liberty Gold Corp. (TSX: LGD) has engaged National Bank Financial Inc. for a bought deal private placement of 24,938,426 units at $0.42 per unit for gross proceeds of $10,474,139.

RCF Opportunities Fund L.P. has agreed to purchase, subject to certain conditions, 14,784,523 units for approximately $6.21 million.

Upon closing of the private placement, RCF will own 8.4% of Liberty Gold’s issued and outstanding common shares and 12.1% on a partially-diluted basis.

photo credit: Liberty Gold Corp.

News Release

Liberty Gold Announces $10.5 million Bought Deal Private Placement; RCF to Acquire 8.4% of Liberty Gold

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

VANCOUVER, B.C. JANUARY 8, 2018 – Liberty Gold Corp. (LGD-TSX) (“Liberty Gold” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. (the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on a bought deal private placement basis, 24,938,426 units of the Company (the “Units”) at a price of $0.42 per Unit (the “Private Placement”). The gross proceeds to the Company will be $10,474,139. Under the Private Placement, RCF Opportunities Fund L.P. (“RCF”) has agreed to purchase, subject to certain conditions, 14,784,523 Units. Following closing of the Private Placement, RCF will own 8.4% of the Company’s issued and outstanding common shares and 12.1% on a partially-diluted basis.

Each Unit will consist of one common share and one-half of one common share purchase warrant (each whole warrant, a “Warrant”) with each Warrant exercisable by the holder into one common share of the Company at a price of $0.65 per share for a period of 36 months from the closing date.

The proceeds raised under the Private Placement will be used for the Company’s continued exploration and drilling programs, to finalize a resource estimate for the Goldstrike Project and for general corporate purposes.

The Private Placement is expected to close on or about January 26, 2018 and is subject to the Company receiving all necessary regulatory approvals, including approval of the Toronto Stock Exchange. Securities issued under the Private Placement will be subject to a four month hold period which will expire four months plus one day from the closing date of the Private
Placement.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities to, or for the account or benefit of, persons in the United States or “U.S. persons” (“U.S. Persons”), as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”). The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws, and may not be offered nor sold to, or for the account or benefit of, persons in the United States or U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

ABOUT LIBERTY GOLD

Liberty Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our flagship property is the Goldstrike Oxide Gold Project in Utah. Liberty also has a pipeline of projects, including Black Pine in Idaho and Kinsley Mountain in Nevada, providing a solid platform for future growth. Over the past 5 years, there have been 8 new open-pit, heap leach gold mines built around the world and the management team and/or directors of Liberty Gold are responsible for discovering, developing and/or building two of them. Long Canyon in Nevada (Fronteer Gold) and Karma in Burkina Faso (True Gold) both reached commercial production in 2016.

ABOUT RCF
Resource Capital Funds is a group of commonly managed private equity funds, established in 1998 with a mining sector specific investment mandate spanning all hard mineral commodities and geographic regions. Since inception, RCF has supported 166 mining companies, with projects located in 51 countries and across 29 commodities. Further information about RCF can be found on its website (www.resourcecapitalfunds.com).

For more information, visit www.libertygold.ca or contact:
Susie Bell, Manager, Investor Relations
Phone: 604-632-4677 or Toll Free 1-877-632-4677
info@libertygold.ca