Liberty Mines Inc.
TSX : LBE

Liberty Mines Inc.

May 08, 2008 13:31 ET

Liberty Arranges US$15,000,000 Credit Facility

EDMONTON, ALBERTA--(Marketwire - May 8, 2008) - Liberty Mines Inc. ("Liberty or the Corporation") (TSX:LBE) is pleased to announce that it has arranged a US$15,000,000 credit facility with Jilin Jien Nickel Industry Company Ltd. ("JJNICL") of China. The funds, which are prepayments for concentrate produced from the Redstone nickel concentrator, will be advanced in tranches. Each tranche will bear interest at 9.71% on the outstanding balance and is repayable within one year of the date of funding with concentrate shipped to JJNICL; similar to Liberty's previous arrangement with JJNICL in 2006. No securities of any kind are to be issued by Liberty in connection with the credit facility.

Liberty has committed to ship 20 tonnes of concentrate per day under a revised off-take agreement commencing with pre-production at the McWatters nickel mine and ending on November 23, 2010. The balance of the concentrate from the Redstone mill will continue to be shipped to Xstrata Nickel in Sudbury under the existing off-take agreement as outlined in the press release of November 14, 2007.

"We are pleased to be provided with this non-dilutive credit facility from JJNICL." said Gary Nash, Liberty's President and CEO.

This credit facility completes the total financing announced on April 29, 2008. This part of the financing will be used to fund mining property acquisitions and associated exploration, continued development to bring the McWatters Mine into pre-production, and for general working capital. As most of the surface infrastructure at the McWatters Mine will be used for the Hart nickel mine currently in the permitting stage, the corresponding costs will be proportioned between the projects.

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 included in this release, without limitation, statements regarding production targets, 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
    or
    Liberty Mines Inc.
    Chris Simister
    Manager Investor Relations
    (780) 485-2299
    (780) 485-2253 (FAX)
    Email: csimister@libertymines.com