Liberty Mines Inc

Speaking of due diligence.

12/10/2009 11:01:17 AM | | 13 reads | Post #27718456

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Speaking of due diligence. Have any of you actually read and understood what happened to your company? It appears you listen primarily to your lead pumper (N77) who believes whatever LBE management says. This is strange because I don't believe they have actually made any of their grandiose targets.

Targets – Redstone Mill, on time and under budget

Redstone Mine – dewatered, producing mine

McWatters – missed target – why? – collapse of financial sector at time financing fell through – collapse of the mining sector and in particular the price of Ni – no onepredicted $4. Ni!

They did however overspend, underdeliver and lost effective control (51%) of LBE. Add that to a trading halt, delisting reveiw, improper financial & 43-101's and you get ?

“ Alberta. Liberty Mines Inc. (“Liberty or the Corporation”) is pleased to announce that it has completed the CDN$30,000,000 transaction ("Transaction") with Jilin Jien Nickel Industry Co., Ltd. ("JJNICL") of Panshi City in China announced on April 14, 2009. JJNICL is now the largest shareholder of Liberty with a 51% ownership of the common shares of the Corporation. It also holds 186,994,510 convertible and redeemable preferred shares fully described in recent press releases.

As part of the Transaction, JJNICL paid a negotiated amount to purchase the notes and warrants from the lenders of a loan made to Liberty on April 29, 2008. The warrants were cancelled as one of the conditions to close the Transaction. JJNICL has a first charge on the Redstone and McWatters mining leases as security for the funds advanced to the Corporation from May 2008 to August 2008 for prepayments ("collectively the Prepayment") of nickel in concentrate. The Prepayment is to be repaid to JJNICL by May 25, 2011 and bears interest at 9.71% annually on the unpaid balance. Any balance due on the Prepayment after that date can be converted, at the sole discretion of JJNICL, to common shares of the Corporation at 11 cents per share.”

Liberty announced a $4,500,000 credit facility with its major shareholder Jilin Jien Nickel Industry Co., Ltd. of China on July 30, 2009 to fund the development of the McWatters mine. The credit facility was advanced in three tranches: The first tranche of $1,000,000 was released on July 30, 2009 and the second and third tranches were funded in the last weeks of August 31, 2009 and September 30, 2009, respectively. The principal advanced bears interest at 8% on the unpaid balance and is payable in full with interest by July 30, 2010. Liberty may, at its option, prepay at any time all or any portion of the principal amount outstanding or any interest owing without notice or penalty provided that any such prepayment shall be applied firstly to interest and then to the payment of principal

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TRADING HALT – WHY? – Answer we had no money to file the requirements for the TSX

Press Release 8-09 July 17, 2009

Revocation of Cease Trade Orders

EDMONTON, Alberta. Liberty Mines Inc. (“Liberty or the Corporation”) is pleased to announce that each of the Alberta Securities Commission, the British Columbia Securities Commission and the Ontario Securities Commission (the “Commissions”) have granted a full revocation (the “Revocation”) of the cease trade order issued by each of the Commissions against the Company (the “CTOs”).

The CTOs had been imposed by the Commissions for failure by the Company to file its audited financial statements for the year ended December 31, 2008, management discussion and analysis for the year ended December 31, 2008, annual information form for the year ended December 31, 2008 and the certifications required with respect thereto (collectively, the “Annual Filings”) by March 31, 2009. The Company filed its Annual Filings on June 18, 2009 together with a management information circular for its annual meeting of shareholders to be held on July 21, 2009. The Company filed its interim financial statements for the three months ended March 31, 2009, management discussion and analysis for the three months ended March 31, 2009 and the accompanying certifications on July 7, 2009. All of the Company’s continuous disclosure documents can be reviewed on SEDAR.

.Now the LBE share holders are likely to see another massive dilution when JJ takes another big bite out of LBE. After that JJ will own about 80% and take it private, pay the share holders cents on the dollar.

“Liberty is now preparing to start operations later this yearand fully intends to have the Prepayment paid to JJNICLbefore the due date; thus avoiding significant dilution to the outstanding common shares at that time.”(PR7-09)

Questions to think about!Why would JJNICL have given us a $4.5 million Credit when we needed it?We could have had massive dilution then.A matching amount of preferred shares would have been converted and shares could have been done as a PP to another 3rd party.JJNICL have assisted us when we built the Mill, they have expressed interest in assisting to built a Hydromet facility for McAra, but they are not stupid.They did want first charge on the Redstone and McWatters mining leases as security.Personally if I had the money to do what they have done, I would have wanted to hold them as security too.It just makes Business sense.

Finally about Promises made by management.If life has taught Liberty one lesson then we as shareholders need to read the fine print in any press release given recently:

CAUTIONARY STATEMENT

All statements other than statements of historical fact included in this release, without limitation, statements regarding future plans and objectives of Liberty, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Liberty’s expectations are: exploration risks; commodity prices; regulatory approvals; receipt of mining permits and leases; and assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators. (PR7-09)

. Thats the reality drillbit, sorry if you can't accept it.

Driller.....