Daily Archives: August 14, 2012

TSX: LBE

TORONTO , Aug. 14, 2012 /CNW/ - Liberty Mines Inc. ("Liberty" or the "Company") announced today that effective immediately it has temporarily suspended production activities due to a low nickel price environment, which has declined by more than 25% in the past six months. Liberty's decision is designed to preserve its nickel ore for when base metals prices improve, and production becomes economically viable.

"Clearly, we are disappointed that market conditions and commodities prices have not kept pace with Liberty's turnaround since the start of the year," said Chris Stewart , President and CEO of Liberty Mines. "Our decision to suspend production temporarily is not being taken lightly, but is ultimately in the best long-term interests of our investors and strategic partners. In the interim, we are making every effort to reduce costs and update our go-forward strategy."

The Company will move all of its assets into a care and maintenance mode effective immediately. This will enable Liberty to protect its assets, and keep them in a ready state so that viable production can easily be restarted when the price of nickel has recovered sufficiently.

To reduce short-term cash requirements, Liberty has also decided to temporarily suspend its exploration diamond drilling activities until further notice.

In response to adverse market conditions, Liberty has also announced that the offering of units of the Company contemplated under the preliminary short form prospectus dated June 26, 2012 is being withdrawn. The Company is reviewing its options for alternative financing arrangements as part of its updated strategy.

To address short term cash requirements, the Company has approached its primary shareholder, Jien International Investment Limited (JIIL), for additional financial support. JIIL has agreed to provide additional financial support to allow Liberty to continue as a going concern by making available an additional $5 million dollars between the date hereof and the end of the year. Interest on these funds will accrue at the rate of 10% per annum following receipt of the required regulatory approvals (including shareholder approval if applicable) and will be due on December 31 , 2012. This additional advance will be secured as part of the existing security arrangements with JIIL and will be subject to standard covenants and events of default

Liberty also announced that it has been advised that its primary shareholder, JIIL, is re-evaluating the terms of the debt restructuring announced previously due to unfavorable market conditions and declining metals prices. The parties have agreed to enter into negotiations to complete a restructuring of all outstanding debt owed to JIIL prior to December 31 , 2012. Liberty will keep shareholders apprised of new developments as negotiations are settled.

About Liberty Mines Inc. Liberty Mines Inc. is a mid-tier producer of nickel and is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada . It owns and operates the only nickel concentrator in the Shaw Dome, a prospective nickel belt region near Timmins, Ontario. With a new management team in place, Liberty is focused on growth initiatives not only through a more aggressive exploration program on its current properties but also through potential acquisition or partnership opportunities beyond its core Timmins area projects.

SOURCE: Liberty Mines Inc.

See the original post here:
Liberty Provides Update on Operations, Financing and Debt Restructuring

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2012) - Sennen Resources Ltd. (SN.V) ("Sennen or the Company") comments briefly on the second "Open Letter to Shareholders of Sennen Resources" (the "Letter") dated August 9, 2012 issued by Liberty Silver Corp. (TSX:LSL and LBSV-OTCBB) ("Liberty").

The Letter does nothing to refute the cogent reasons for rejection presented in Sennen's Circular and News Release dated July 31, 2012, and the Letter is replete with fundamental errors that display an embarassing lack of understanding by Liberty's management of Sennen's financial statements and other disclosure. Out of apparent desperation, despite suggesting the desire to conclude a "friendly" transaction, Liberty has spent an inordinate amount of time and effort on personal attacks and criticizing the stewardship of the Sennen's Board and management for succeeding where they themselves have not. Rather ironically, Liberty will fail if it is unable to achieve exactly what that stewardship has produced (and the Board of Liberty has not) - $13.5M in its treasury which places Sennen in a strong financial position to carry on its business and remain solvent for the foreseeable future.

Sennen's Shareholders, who understand the lack of relevant experience in the sector as demonstrated by Liberty's management in their Letter, and their desperate attempt to access cash by any means for that company's survival, still await a response from Liberty's management regarding their "entry cost" into Liberty. Sennen Shareholders, as well as any current and potential future shareholders of Liberty, are entitled to know whether this was at one half of one cent per share (or less), being the average cost of 68.4M of the 81M Liberty shares currently on issue. This fundamental shareholder issue of value creation or exploitation by the Liberty management, board and controlling shareholders must be addressed. Sennen has still been unable to locate Liberty management's US Insider filings, and Sennen once again extends an invitation to Liberty Directors and management to disclose this information in the interests of full and plain disclosure-a subject that lies at the very heart of Sennen Shareholders' lack of trust in Liberty's management.

Sennen has yet to receive one letter, phone call or email in support of the Liberty Offer, and the response of Sennen Shareholders to the Liberty Letter has been extremely negative. Any Sennen Shareholders that do wish to incur the high risk of financial exposure to Liberty are reminded that they can simply buy Liberty shares in the market.

Stated Ian Rozier, President of Sennen, "Several of the comments made by Liberty's management are unprofessional, factually inaccurate and disingenuous, and clearly demonstrate their lack of experience and integrity without the need for any further comment from Sennen. Quite simply put, Sennen Shareholders are effectively being asked to make a Private Placement of $13.5M into a junior company with an OTC Bulletin Board type share structure that the market, Liberty directors, and its major shareholders, are themselves unwilling to do. The myriad of reasons for the markets' refusal to make such an investment into Liberty are confirmed by the very comprehensive report from the Financial Advisors to the Board of Sennen, and based on Liberty's lack of financing success and the unwillingness of Liberty's directors and major shareholders to finance it themselves, we can only assume that they are aware of, and concur with this market assessment. We repeat, based on any analysis of the fundamental issues, Liberty's Offer is of zero interest to Sennen's Board, management and to shareholders representing a majority of the Company's shares. Liberty's advisors should advise them to stop wasting everyone's time and money."

Do not tender your Sennen Shares to the Liberty Offer. Sennen Shareholders are reminded that the Board of Directors have recommended rejection of the Liberty Offer for the reasons set out in the Director's Circular dated July 30, 2012. There is no need for Sennen Shareholders to do anything to reject the Liberty Offer. Please refer to the Director's Circular, which is available on SEDAR, for the reasons for rejection, and steps to take if you have already tendered your Sennen Shares.

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.

Read more:
Sennen Comments Briefly on Liberty's Desperate Second Letter