Liberty Silver Corp.
OTC Bulletin Board : LBSV

Liberty Silver Corp.

June 20, 2011 08:00 ET

Liberty Silver Announces Private Placement of Special Warrants

RENO, NEVADA--(Marketwire - June 20, 2011) -


Liberty Silver Corp. (OTCBB:LBSV) ("Liberty Silver" or the "Company") is pleased to announce that it has engaged NCP Northland Capital Partners Inc. as lead agent (the "Agent" of "NCP") to undertake a best efforts private placement financing of special warrants (the "Special Warrants") to raise gross proceeds of up to Cdn. $8 million (the "Offering"). Liberty Silver has also granted to NCP an option, exercisable at any time prior to the closing of the Offering, to sell up to an additional 25% of the Special Warrants sold under the Offering for additional gross proceeds of approximately Cdn. $2 million (the "Agents Option").

Pursuant to the Offering, NCP will offer special warrants of the Corporation at a price per Special Warrant to be determined in the context of the market, on a best efforts private placement basis, for gross proceeds of up to Cdn. $10 million, assuming full exercise of the Agents Option.

Upon the exercise or deemed exercise thereof, each Special Warrant will entitle the holder thereof to receive one unit (a "Unit") without payment of any additional consideration. Each Unit will consist of one common share of the Company (a "Common Share") and one Common Share purchase warrant of the Company (a "Warrant"). Each Warrant will entitle the holder to acquire one Common Share at a price to be determined in the context of the market for a period of two years following the date of closing of the Offering, subject to adjustment as described below.

Each Special Warrant will be automatically exercisable for no additional consideration into one Unit of the Company upon the earlier to occur of: (i) the Company clearing a prospectus (final) (the "Prospectus") in applicable Canadian jurisdictions and achieving a listing of its Common Shares on the Toronto Stock Exchange (the "TSX"), and (ii) December 31, 2011.

Liberty Silver shall use its reasonable best efforts to obtain a receipt for the Prospectus and listing of the common shares on the TSX within 45 days following the Closing Date (the "Qualification Date"). If the Qualification Date does not occur within such 45 day period, then each Special Warrant will entitle its holder to acquire, upon exercise or deemed exercise, 1.1 unit.

The net proceeds of the Offering will be used to fund the exploration and development of the Trinity Silver Mine, and for general corporate and working capital purposes.

The Offering is expected to close on or about July 22, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.

This press release is not an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sales of the securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

About Liberty Silver Corp.

Liberty Silver Corp. is focused on exploring and developing mineral properties located in North America. The Company is led by a skilled, experienced, management team and board of directors with significant experience managing exploration, development and mining projects. The Company is committed to creating value for its shareholders by advancing its current projects to production, developing new resources on its current properties, and by acquiring new properties that have the potential to increase their resource base. The Trinity silver project, located in Pershing County, Nevada is the Company's flagship project. Liberty Silver has the right to earn a 70 percent interest in the Trinity property from Renaissance Gold Inc. subject to certain obligations.

Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Liberty Silver Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to Liberty Silver Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters. Liberty Silver Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.

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