SOURCE: Liberty Mines Inc.

November 25, 2005 14:55 ET

Liberty Completes Over-Subscribed $3,000,000 Private Placement

TIMMINS, ON -- (MARKET WIRE) -- November 25, 2005 -- Liberty Mines Inc. (TSX-V: LBE) ("Liberty") is pleased to announce the completion of its previously announced $2,500,000 private placement offering (the "Offering"). As a result of the over-subscriptions, MGI Securities Inc. ("MGI") fully exercised its $500,000 over-allotment option, resulting in gross proceeds to Liberty of $3,000,000.

Under the Offering 5,070,639 flow-through common shares priced (the "Flow-Through Shares") at $0.45 per Flow-Through Share and 1,795,530 units (the "Units") priced at $0.40 per Unit were issued. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional Liberty common share at a price of $0.50 until November 25, 2007. All securities issued under the Offering are subject to a four-month hold period, which expires on March 26, 2006. Closing of the Offering is subject to the final approval of the TSX Venture Exchange.

MGI acted as lead agent under the Offering and was paid a cash commission of 8% of the gross proceeds raised under Offering. MGI and the sub-agents assisting in the Offering also received broker warrants to acquire in the aggregate that number of common shares of Liberty equal to 10% of the number of Flow-Through Shares and Units sold under the Offering. Each broker warrant is exercisable for one common share at any time until November 25, 2007 at an exercise price equal to $0.40.

Proceeds of the Offering will be used to bring the Redstone nickel mine near Timmins into production, exploration at the Redstone mine, the McWatters nickel deposit and the McAra Lake-Ray Township cobalt properties as well as for general working capital.

As at November 25, 2005 Liberty had a total of 39,402,366 common shares issued and outstanding.

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