07:07 AM EDT, 09/08/2025 (MT Newswires) -- Liberty Gold ( LGDTF ) said Monday it entered into a subscription agreement with Centerra Gold ( CGAU ) under which Centerra will acquire a 9.9% stake in the company.

Centerra agreed to purchase 50 million Liberty Gold ( LGDTF ) common shares through a private placement at $0.56 each for gross proceeds of $28 million. The price represents a 10% premium to the five-day volume-weighted average price of the shares on the Toronto Stock Exchange.

Liberty Gold ( LGDTF ) said it will use the proceeds to advance technical studies at its Black Pine project and for general corporate purposes.

The transaction is scheduled to close Oct. 1, subject to customary conditions including TSX approval.

In connection with the deal, Liberty Gold ( LGDTF ) and Centerra plan to enter into a customary investor rights agreement at closing. The agreement will give Centerra financing participation rights, information rights, technical committee representation and the right to nominate one director to Liberty Gold's ( LGDTF ) board.

"[Centerra's] investment is a strong endorsement of our progress and the compelling potential of our flagship US oxide gold project, Black Pine," said Liberty Gold ( LGDTF ) chief executive Jon Gilligan. "We look forward to collaborating closely as we accelerate Black Pine towards feasibility and on to a construction decision."

Centerra's share price recently rose 1.4% to US$8.76 in the U.S. pre-market trading.