SOURCE: Liberty Mines Inc.

February 08, 2007 10:54 ET

Liberty Closes First Tranche of Flow-Through and Unit Financing

EDMONTON, AB -- (MARKET WIRE) -- February 8, 2007 -- Liberty Mines Inc. (TSX-V: LBE) (Liberty" or the "Corporation") is pleased to announce that it has completed the first tranche of its brokered financing through Salman Partners first announced on January 18, 2007 for gross proceeds of $8,041,590. The financing was modified to allow one institutional investor to close on February 14 in a second tranche to complete the financing as originally stated. In connection with the first tranche of the financing, Liberty issued 1,311,700 flow-through common shares (the "Flow-Through Shares") at a price $2.70 per Flow-Through Share and 1,800,000 units (the "Units") at a price of $2.50 per Unit. Each Unit consists of one common share of Liberty and one-half of one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one common share of Liberty at a price of $2.80 per common share for a period of 24 months provided that if after June 9, 2007 the closing price of the common shares on the principal market on which such shares trade is equal to or exceeds $3.75 for 20 consecutive trading days, then the expiry date of the share purchase warrants shall automatically accelerate to the date which is 30 days following the date a formal notice is issued by the Corporation announcing the accelerated expiry date of the share purchase warrants.

In connection with the first tranche of the brokered financing, Liberty paid fees totaling $603,119.25 and issued compensation warrants exercisable for 248,936 common shares of Liberty. Securities issued pursuant to this tranche of the financing have a 4 month hold period which expires on June 9, 2007. The non-brokered part of the financing closed today raising $2,599,870 which consists of 599,740 units and 407,600 flow-through shares issued at the same prices, warrant acceleration clause and hold period as stated above. Liberty paid finders fees of $149,670 with no warrant compensation for this part of the financing. The total gross proceeds received today was therefore $10,641,460. Completion of the financing remains subject to the final approval of the TSX Venture Exchange.

The resignation of Mr. Tom James as a director of the company was accepted effective January 15, 2007. The directors wish to thank him for his service and contribution to the early formation of the Company as both a director and CFO. After taking a well deserved rest, Tom may be involved with the investor relations aspect of the Company.

About Liberty Mines Inc.

Liberty Mines Inc. is a mineral exploration and development company with a focus on the development and mining of nickel, cobalt, copper 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. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward looking statements" regarding the expected completion of the second tranche of the financing. Actual results may differ materially from those contemplated by these statements depending upon, among other things, any unforeseen events.

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