Liberty Gold Spin-Out Creates New Profit Opportunity in Gold & Antimony

Liberty Gold Spin-Out Creates New Profit Opportunity in Gold & Antimony

Unlocking Shareholder Value: Why the Spin-Out Makes Sense

Liberty Gold’s decision to spin out its Antimony Ridge discovery into a separate entity is a strategic move designed to maximize shareholder value while allowing the company to focus on its core gold assets. The company’s flagship project, Black Pine in Idaho, is advancing toward production, demonstrating robust economic potential. However, the discovery of high-grade antimony mineralization at Antimony Ridge in Utah presents a unique opportunity in the rapidly growing critical minerals sector.

By separating these assets, Liberty Gold ensures that both projects receive the attention, capital, and expertise necessary to unlock their full value. Shareholders will gain exposure to both a high-potential gold development company and a strategic metals exploration company, each with distinct investment theses. This move is expected to enhance market exposure, attract specialized investors, and optimize long-term returns.

Black Pine: A High-Value Gold Asset with Strong Economics

Black Pine is a cornerstone asset for Liberty Gold, positioning the company for significant gold production in a stable jurisdiction. The Pre-Feasibility Study (PFS) confirmed that the project is financially compelling, with an expected 2.2 million ounces of gold production over a 17-year mine life, a $550 million after-tax net present value (NPV) at $2,000 per ounce gold, and an internal rate of return (IRR) of 32%.

This gold project is technically simple, low-risk, and economically strong, with heap-leach oxide gold mineralization that allows for efficient extraction. By spinning out Antimony Ridge, Liberty Gold ensures that all resources and management focus remain dedicated to advancing Black Pine through permitting and into production, rather than being spread across two very different commodities.

Antimony Ridge: A Critical Mineral Discovery with Growing Demand

While Liberty Gold’s primary focus is gold, the company’s discovery at Antimony Ridge presents an emerging opportunity in the U.S. critical minerals market. Recent surface sampling has returned impressive results, with antimony grades reaching 3.01% and gold grades of up to 0.68 g/t. Mapping and geochemical analysis indicate that the mineralized zone extends over a 2-kilometer strike length, with soil anomalies suggesting an additional 3 kilometers of potential expansion.

Early metallurgical results show antimony recovery rates between 51% and 76% using combined gravity and flotation methods, with the potential for a high-grade antimony concentrate (45%-50% Sb). These results confirm the viability of the deposit and signal that further exploration could significantly increase the project’s value.

Strategic Metals: Why Antimony Matters for Investors

Antimony is a designated critical mineral in the U.S. due to its essential role in flame retardants, batteries, semiconductors, and military applications. The U.S. is almost entirely reliant on foreign sources for antimony, making domestic production a priority for national security and industrial stability.

As demand for antimony continues to rise—particularly with increased battery and defense applications—Liberty Gold’s spin-out positions the new entity to capitalize on growing interest from both private and governmental sectors. The potential for supply chain disruptions from foreign producers further strengthens the case for a U.S.-based source of antimony, increasing the strategic appeal of Antimony Ridge.

Maximizing Market Exposure: Two Companies, Two Investment Opportunities

The spin-out allows investors to choose between a pure-play gold development company (Liberty Gold) and a strategic metals exploration company (NewCo). Rather than bundling both assets under one umbrella, which could limit investor interest, Liberty Gold is creating two focused investment opportunities.

• Liberty Gold will remain focused on advancing Black Pine through permitting, financing, and into production, which aligns with gold investors seeking stable, long-term value growth.
• NewCo (the Antimony Ridge spin-out) will be a high-risk, high-reward exploration play in the critical minerals sector, attracting investors who want early exposure to a strategic metal with strong government backing and demand growth.

By structuring the spin-out this way, both companies can attract the appropriate investor base, improving overall market visibility and valuation potential.

Government Support & Funding Potential for Critical Minerals

The U.S. and Canadian governments are actively supporting the development of domestic critical mineral resources, providing funding, grants, and incentives to companies that can establish secure supply chains. By creating a separate, strategically focused entity, the new company stands a better chance of securing government-backed funding and partnerships that might not have been available under Liberty Gold’s broader structure.

The new company could also pursue grants and investment from defense and technology sectors looking to secure long-term antimony supply. This provides a unique funding advantage, reducing dilution risks and potentially accelerating project development.

Investor Benefits: Capitalizing on Gold and Strategic Metals Growth

With Liberty Gold’s stock rising 46% this year and trading at a 52-week high, the timing of the spin-out is ideal for shareholders. Investors will soon have the ability to retain exposure to both gold and strategic metals, benefiting from the strength of Black Pine’s gold production potential and the upside of a rapidly growing antimony opportunity.

For gold-focused investors, Liberty Gold remains an attractive option, with a low-risk, high-reward asset in Black Pine and a clear pathway to production. For those seeking exposure to the expanding critical minerals market, the newly created entity provides a direct way to invest in an emerging U.S. antimony producer at an early stage.

A Well-Timed Move for Long-Term Value Creation

Liberty Gold’s decision to spin out Antimony Ridge is a well-calculated move that strengthens its position in the gold sector while unlocking new opportunities in the critical minerals market. By forming two independent companies, Liberty Gold maximizes the potential of both assets, giving investors greater flexibility, clearer investment choices, and exposure to two high-growth markets.

With Black Pine poised to become a major U.S. gold mine and Antimony Ridge emerging as a potential domestic supplier of a strategic metal, the spin-out is a smart, forward-thinking strategy that could generate significant long-term value for shareholders.