Strategic Investment Promises Big Gains for Gold Explorer

Source: Rabi Nizami 09/08/2025

Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) announces a subscription agreement with Centerra Gold Inc. through which Centerra will acquire a 9.9% stake in Liberty. Read why this analyst rates the stock Outperform with a more than 30% possible return.

Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) announced a subscription agreement with Centerra Gold Inc. (CG:TSX; CADGF:OTCPK) through which Centerra will acquire a 9.9% stake in Liberty by purchasing common shares, National Bank of Canada Financial Markets Analyst Rabi Nizami wrote in an updated research note on September 8.

Centerra will buy 50.02 million common shares at CA$0.56 each, reflecting a 10% premium over the five-day VWAP and a 5.7% premium over the last closing price, for total proceeds of CA$28.01 million, Nizami noted.

Additionally, Liberty and Centerra will establish an investor rights agreement, allowing Centerra to maintain its ownership percentage, have representation on Liberty’s technical committee, and appoint one board member. The subscription is anticipated to close around October 1, 2025, with the shares subject to a four-month holding period.

Nizami rate the stock Outperform with a CA$0.70 per share target price, a more than 30% return from the price at time of writing.

Renewed Interest in Domestic Projects

Liberty’s shares have outperformed recently, rising 41% over the past month compared to a 19.1% increase in the junior gold miner index, the analyst wrote. There has been a renewed interest in domestic projects, especially those with clear permitting pathways, and this transaction aligns with that trend.

Centerra’s investment enhances the project’s visibility as one of the few pre-feasibility stage multi-million-ounce heap leach projects in the U.S. Nizami said National Bank of Canada Financial Markets anticipates continued exploration efforts to identify additional resources, which are crucial for re-optimizing future mine plans to stabilize production and reduce reliance on stockpile rehandling during the middle years of the current PFS mine plan.

Upcoming Catalysts

The newly announced funding adds to the US$17.6 million in cash reported as of Q2/25, along with US$4.8 million in proceeds from the TV Tower sale expected in Q4/25 and Q4/26. These funds will support the advancement of the 100%-owned Black Pine project in Idaho towards a construction decision, ideally envisioned by management for late 2027.

Over the next year, Liberty will conduct metallurgical studies and a 40,000-meter drill program to inform a feasibility study expected in H2/26. In the near term, the submission of the NOI for Black Pine will formally initiate the federal permitting process for the project.

Nizami noted upcoming catalysts for the company, including further metallurgical test results, results from the 40,000-meter RC drill program that began in May, submission of the Black Pine NOI, completion of feasibility resource drilling at Black Pine, a feasibility study on Black Pine, and receipt of a US$2.6 million TV Tower deferred payment.

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