Liberty Mines Inc.
TSX : LBE

Liberty Mines Inc.

March 10, 2008 08:00 ET

Liberty Arranges $21 Million Debt Financing

EDMONTON, ALBERTA--(Marketwire - March 10, 2008) -

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

Liberty Mines Inc. (TSX:LBE) ("Liberty or the Corporation") is pleased to announce that it has entered into an agreement with Salman Partners Inc. as lead agent for a debt financing (the "Financing"), on a best efforts private placement basis, consisting of Units for gross proceeds of up to approximately $21,000,000.

Each Unit consists of one unsecured promissory note (the "Note") and 150 transferable share purchase warrants (the "Warrants"). Each Note will have a par value of C$1,000 and will pay a 12% coupon per annum, paid semi-annually for a period of three years. Each Warrant will be exercisable into one common share for a period of twenty-four (24) months from the date of Closing and have an exercise price of C$2.50 per share.

The Corporation may redeem the Notes at any time after two (2) years from the Closing Date (but with no less than 30 or more than 60 days notice) for an amount equal to the principal amount and all accrued and outstanding interest on the Notes up to the redemption date, plus an amount equal to the interest that would be payable on the Notes for the period from the redemption date to the date that is three (3) months from the redemption date.

The Notes will be direct unsecured obligations for borrowed money and will rank equally with all other unsecured indebtedness of the Corporation. The Notes are not convertible at the discretion of the lenders into common shares of the Company.

The Corporation will, subject to the approval of the Toronto Stock Exchange (the "TSX"), have the option to pay the principal amount and all accrued and unpaid interest due at maturity in Common Shares in lieu of cash other than in those circumstances where an event of default has occurred. Subject to a notice period of not more than 60 days and not less that 30 days, where the Corporation so elects to pay the Principal Amount and all accrued but unpaid interest in Common Shares, the Common Shares will be valued at 95% of the weighted average trading price on the TSX for the 20 consecutive trading days ending five trading days prior to the maturity date.

In consideration for their services, the agents will receive a cash commission equal to 6.0% of the gross proceeds from the offering.

The offering is scheduled to close on or about March 28, 2008 and is subject to certain conditions including, but not limited to, receipt of all required regulatory approvals. The securities issued by Liberty in connection with these offerings are subject to a 4-month "hold period" as prescribed by the TSX. The net proceeds of the financing will be used for acquisitions and associated exploration, procurement of equipment and infrastructure to bring the Hart nickel mine into production, and general working capital.

About Liberty Mines Inc.

Liberty Mines Inc. is a producer of nickel and is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada.

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 in this release, including 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

  • Liberty Mines Inc.
    Dr. Gary Nash, PhD (Physics)
    President & CEO
    (416) 238-9736
    (780) 437-7898 (FAX)
    Email: gnash@libertymines.com