Liberty Gold Corp. has received a US$4 million nonrefundable pre-payment from Cengiz Holdings A.Ș. for the sale of its 40% interest in the Halilağa copper gold porphyry deposit, located in Biga Province, northwest Turkey.

The company will also receive US$6 million on closing of the amended sale agreement on August 15, 2020; US$6 million on the first anniversary of the closing date, August 15, 2021; and US$6 million on the second anniversary of the closing date, August 15, 2022.

The first and second anniversary payments will be bank guaranteed.

Cengiz will acquire Liberty Gold’s 40% interest in the 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.

Proceeds from this transaction will be used to fast-track the drill program at Liberty Gold’s Black Pine high-grade Carlin-style oxide gold property in southern Idaho. The 2020 drill program will be expanded to include an estimated 45,000 meters of reverse circulation drilling and resource estimation, core drilling and metallurgical column testing. The program will expand on exceptional results thus far in 2019, augmenting historical results showing shallow oxide gold mineralization present over a 7-square-kilometer area.