11:32 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.

National Bank of Canada maintained its outperform rating and $0.70 price target on Liberty Gold ( LGDTF ) following the news. The bank said the target is based on a 0.60x multiple to project NAV plus corporate adjustments.

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 expected 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 an investor rights agreement at closing that 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."

National Bank noted that Liberty shares have outperformed over the past month, rising 41% compared with a 19.1% gain in the junior gold miner index.

"We have recently observed a resurgence in interest in domestic projects, particularly those with visibility on permitting, and today's transaction supports this trend," the bank said.

Liberty Gold's ( LGDTF ) share price jumped 9.4% at last look to $0.58 on the TSX.

Price: 0.58, Change: +0.05, Percent Change: +9.43