Liberty Gold enters deal to sell Gage project

Executive Summary

• Liberty Gold Corp. has entered into an asset purchase agreement to divest its Gage project (copper-gallium-germanium) in southern Utah to a subsidiary of Blue Moon Metals Inc.
• The transaction is part of a strategic review to divest non-core assets, with the company retaining its focus on its flagship Black Pine gold project.
• Closing is expected within 30 days, subject to TSX-V regulatory approvals and customary conditions.

Key Details

• Transaction Structure: Asset purchase agreement between Liberty Gold USA Inc. (subsidiary of Liberty Gold) and a subsidiary of Blue Moon Metals Inc.
• Consideration:
  • Equity: 420,935 common shares of Blue Moon Metals Inc.
  • Royalty: A 2.0% net smelter return (NSR) royalty on mineral production from the project.
  • Royalty Buyback Option: Blue Moon holds an option to repurchase 1.0% of the NSR for $2 million USD prior to achieving commercial production.
• Valuation of Equity: The 420,935 shares received are valued at approximately $2 million USD.
• Asset Details: The Gage project consists of interests in unpatented critical minerals-focused mining claims and School and Institutional Trust Lands Administration (SITLA) leases.
• Hold Period: All Blue Moon shares received are subject to a hold period of four months plus one day from closing under Canadian securities laws.
• Advisers: Blake, Cassels & Graydon LLP and Parsons Behle & Latimer acted as legal counsel. No advisory fees were paid.
• Regulatory Status: Closing is subject to TSX-V regulatory approvals.

Notable Quotes

• No direct quotes from management were included in the provided text.