Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) announced in a news release it agreed to sell its 79.1% interest in the Kinsley Mountain gold project in northwest Nevada to Barrian Mining for a total consideration of $7.5 million.
Liberty Gold will receive the purchase price from Barrian in three tranches over two years. The first will consist of $2.5 million and 2 million Barrian common shares to be paid on the closing date. The next will be the same but will be paid on or before the first anniversary of the closing date. In the final stage, $2.5 million worth of common Barrian shares will be issued to Liberty Gold on or before the second anniversary of the closing.
Liberty Gold will retain a 1% net smelter return (NSR) royalty on the 79.1% interest in Kinsley. Barrian will have the option to repurchase up to one-half of that royalty for $500,000.[NLINSERT]
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