Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) announced in a news release it signed a definitive agreement to sell its Baxter Spring gold project in central Nevada to BlueBird Battery Metals.
For the asset, BlueBird is to pay Liberty Gold US$500,000 in cash in two tranches, half on the transaction closing date and the remainder on or before the first anniversary of the date the TSX Venture Exchange approves the deal.
Additionally, BlueBird will carry out a minimum CA$2 million financing and consolidation of its common shares. After doing so, it will issue Liberty Gold common BlueBird shares in an amount equivalent to 19.5% of its issued and outstanding shares, on a nondiluted basis.
Also, BlueBird will grant Liberty Gold a 2% net smelter return royalty without buyout rights and the 36-month option to repurchase a 35% interest in Baxter Spring for US$1 million. Should the Canadian explorer exercise that right, BlueBird could then buy back 5% of Liberty Gold's 35% share by completing a prefeasibility study.
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