Liberty Gold announced that it has received first pre-payment for the sale of its interests in the Halilağa Project located in northwest Turkey. The company also noted the definitive agreement was amended.
The company shared an update about the pre-payment stating they have received a $4,000,000 nonrefundable pre -payment from Cengiz Holdings for the sale of its 40% interest in the Halilağa copper gold porphyry deposit.
Liberty Gold also noted that the terms of the original share purchase agreement for the sale of its interest in Halilağa were amended as follows:
- US$4,000,000 nonrefundable payment (received)
- US$6,000,000 on closing of the amended sale agreement, August 15th, 2020
- US$6,000,000 on the first anniversary of the closing date, August 15th, 2021
- US$6,000,000 on the second anniversary of the closing date, August 15th, 2022
The first and second anniversary payments will be bank guaranteed.
Cengiz Holding will acquire Liberty Gold’s 40% interest in the Halilağa Project by purchasing the Company’s shares representing 40% of a Turkish holding corporation.
As a result of the Transaction, Liberty Gold will receive a total of US$22 million, unchanged in aggregate from the original Agreement.
Closing of the Transaction is subject to customary conditions including the approval of the Turkish Ministry of Energy and Natural Resources.