The company pursued two transactions. One was the sale to Barrian Mining of its interest in the Kinsley Mountain gold deposit for total proceeds of $6.25 million and 9.9% of Barrian. Liberty Gold will receive the consideration in three tranches over two years.
The second was the sale to Ely Gold Royalties of Liberty Gold's 15% net profit interest in the Regent property in Nevada for a total consideration of $800,000 and 2 million warrants to purchase common Ely shares. The warrants, good until Dec. 18, 2021, are exercisable at CA$0.43 apiece.
During Q1/20, Liberty Gold continued exploration efforts at its Black Pine project in southern Idaho. It defined nine regional drill targets there and announced the start of a 2020 reverse circulation drill program that is fully funded.
The Vancouver-based explorer also requested an amendment to its plan of operations for Black Pine that increases the size of the permitted project area to 11.9 square kilometers from 7.3. Drilling will be done in the expanded area once approved. During Q1/20, the company also continued its metallurgical column testing.
It received CA$2.172 million and CA$325,000 since Jan. 1, 2020, from the early exercise of company common share purchase warrants that were issued with two 2018 bought deal financings. At the end of Q1/20, Liberty Gold had US$15.05 million in cash and short-term investments and US$12.208 million in working capital.
For the quarter, Liberty Gold posted a net loss of US$354,000 versus US$1.416 million a year earlier.[NLINSERT]
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