Liberty Gold sells Goldstrike project in Utah to Heliostar Metals for $72.5M 

Liberty Gold (TSX: LGD) announced Tuesday that it has entered into an agreement to sell the issued and outstanding shares of its subsidiary, Speciality American Metals, which owns the Goldstrike project in southern Utah to Heliostar Metals for $72.5 million.  

The transaction, the company said, will provide Liberty Gold with additional capital to advance its flagship Black Pine gold project in southern Idaho. 

Under the terms, Liberty Gold expects to receive $10 million in cash plus approximately 1.6 million Heliostar common shares valued at approximately $2.5 million on closing; $10 million in cash 12 months from closing; $10 million in cash 18 months from closing; $15 million in cash on the earlier of the achievement of certain infrastructure-related milestones or 5 years from closing; and $25 million in cash on the earlier of release of a feasibility study, a construction decision or 5 years from closing. 

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With a net present value (NPV), at a 5% discount rate, of $552 million and an internal rate of return of 32% Black Pine could produce 2.2 million oz. gold over 17 years, at average all-in sustaining cost of $1,380, according to a 2024 prefeasibility study.  

Last year, Liberty Gold sent in its draft mine plan and signed an interagency memorandum of understanding, starting the countdown to a 2028 construction start.  
 

“This transaction provides meaningful non-dilutive capital, with total consideration of $72.5 million, strengthening our balance sheet at an important stage in the advancement of Black Pine,” Liberty Gold CEO Jon Gilligan said in a news release.  

“The structure delivers near-term funding while maintaining exposure to additional value as Goldstrike advances, supporting feasibility and long-lead procurement at Black Pine, without shareholder dilution,” Gilligan said.  

By market close in Toronto, Liberty Gold’s stock was up 3.8%. The company has a C$568.6 million ($413.1 million) market capitalization.