Las Vegas, NV, July 10, 2013 (GLOBE NEWSWIRE) -- First Liberty Power Corp. (OTCQB: FLPC), an innovative and diversified mine exploration and development company focused on "Mined in America" strategic industrial minerals, today announced it has signed a Letter of Intent (LOI) with Group8 Mining Innovations (Group8) to acquire $1.5 million for the purchase of equipment to process ore from the Fencemaker Operation.
Terms of the LOI call for First Liberty to provide Group8 an initial deposit of $150,000. That will be followed by an additional $150,000 approximately 6 weeks later, upon delivery of the milling equipment. The remaining $1.2 million will be financed by Group8 through a two-year payment program, commencing 3 months after delivery of the equipment and setup of the milling operation The cost of the finance is 10% annually, together with a 3% top-line royalty on mill output while the debt remains outstanding. Further equipment details will be provided upon signing of the contract.
In making the announcement, First Liberty Power CEO Don Nicholson, noted the dual significance of the agreement. "With the Fencemaker mining operation rapidly approaching production, it is critical that we commence acquisition of the mill. With the support of Group8, this is now an achievable target," Nicholson said. "Subject to any final regulatory approvals, we expect the mill to be operational within three months of the equipment order."The above-industry standard of the FLPC milling equipment will allow an upgrade of all permitted antimony (stibnite) ore from Fencemaker to an industry standard 60% concentrate using an advanced, clean milling process. As well, FLPC will have the opportunity to use any excess milling capacity to potentially process ore from other compatible local mining operations. Mr. Nicholson added, "With this purchase arrangement now established, together with the recently announced plan by the board of directors to seek approval to increase the company's authorized capital, we are well positioned to obtain the necessary capital required, on more favorable terms, for the mill equipment payments and other operational startup capital requirements."