SOURCE: Liberty Mines Inc.

October 18, 2005 09:49 ET

Financing for the Redstone Mine and Exploration

TIMMINS, ON -- (MARKET WIRE) -- October 18, 2005 -- Liberty Mines Inc. ("Liberty") (TSX-V: LBE) is pleased to announce the engagement of MGI Securities Inc. as lead agent to complete a private placement of up to $2.5 million consisting of up to $1,900,000 of Flow Through Units and up to $600,000 of Common Share Units. The Flow Through Units will be priced at $0.45 and will consist of one common share. The Common Share Units will be priced at $0.40 per unit and will consist of one common share and one half common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.50 for a period of two years from the date of closing. The agents will have the right, at their discretion at any time prior to the closing of the financing, to increase the size of the financing by up to an additional $500,000 through the sale of any combination of additional Flow-Through Shares and/or Common Share Units. The Closing Date of the financing is November 7, 2005.

The Company will pay an 8% cash commission to the lead agent and issue Broker Warrants equal to 10% of the number of units sold under the private placement. Each Broker Warrant shall be exercisable for one Common Share at any time until the second anniversary of the Closing Date at an exercise price equal to $0.40. Proceeds of the financing will be for the dewatering of the Redstone nickel mine, exploration at the Redstone mine, McWatters nickel deposit, McAra Lake-Ray Township cobalt properties and general working capital.

About Liberty Mines Inc.

Liberty Mines Inc. is a mineral exploration and development company with a focus on the development and production of nickel, cobalt and platinum group metals from its properties in Ontario.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Liberty, 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's expectations are exploration risks, commodity prices, assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators.

Contact Information

  • For further information please contact:
    Dr. Gary Nash, PhD(Physics)
    President & CEO
    Liberty Mines Inc.
    Phone (416) 238-9736
    Fax 780-437-7898
    e-mail: Email Contact