-- Liberty Gold (LGD.TO) has closed the sale of the Goldstrike project in southern Utah to Heliostar Metals, the company said Monday.
The company will receive US$72.5 million in total consideration, composed of US$10 million in cash and about 1.6 million Heliostar common shares valued at about US$2.5 million.
Future milestone-based payments amount to an additional US$60 million, including US$10 million in cash to be received 12 months and 18 months from closing, and US$40 million to be received upon completion of certain project-based milestones or five years from closing, whichever comes earlier.
Proceeds from the transaction are expected to support the continued advancement of the Black Pine Project, including permitting, feasibility study work and long-lead development initiatives.
"Closing the sale of Goldstrike marks an important step in executing our strategy to monetize non-core assets and to direct capital and management focus to our flagship Black Pine Oxide Gold Project," said Jon Gilligan, president and chief executive officer of Liberty Gold.
Additionally, Centerra Gold (CG.TO) elected to exercise its "top-up right" to maintain its 9.9% equity interest in Liberty Gold. In connection, Liberty Gold has issued 2.0 million common shares at a price of C$1.17 per share for total proceeds of C$2.4 million.