Unlocking Value in Specialty Metals: Liberty Gold's Strategic Spinout and Funding Move

Liberty Gold Corp. (LGD.V) is executing a bold restructuring strategy to capitalize on two distinct opportunities: advancing its flagship Black Pine Oxide Gold Project in Idaho and unlocking value in the critical minerals sector through a spinout of its Antimony Ridge discovery. The move, announced in April 2025, reflects a calculated effort to position the company for growth in two high-potential markets while addressing the growing demand for U.S.-sourced specialty metals.

The Spinout: Specialty American Metals Inc.

Liberty Gold will spin out its wholly-owned subsidiary holding the Goldstrike Project and the newly identified Antimony Ridge prospect into Specialty American Metals Inc. (SAM), a new entity focused on U.S. critical minerals. Under the proposed plan of arrangement, Liberty Gold shareholders will receive shares in SAM (at a ratio to be determined) and potentially warrants, while retaining a stake in the parent company. The spinout is subject to shareholder, regulatory, and court approvals, with a shareholder meeting expected in Q3 2025.

The strategic rationale is clear: antimony, a key component in flame-retardant alloys, batteries, and semiconductors, is in high demand as global supply chains face geopolitical pressures. The U.S. government has designated antimony as a critical mineral, and SAM’s Antimony Ridge project—hosting high-grade oxide mineralization—positions the new entity to capitalize on this trend. Meanwhile, Liberty Gold will concentrate resources on Black Pine, a low-cost, high-margin gold project with permitting underway.

Leadership and Governance: Experience Meets Focus

SAM’s management team draws heavily from Liberty Gold’s existing leadership, ensuring continuity and expertise. Russell Starr, a veteran mining executive who previously led Cayden Resources’ $205M sale to Agnico Eagle Mines (AEM.TO), will serve as CEO. Peter Shabestari, Liberty Gold’s Vice President of Exploration, transitions to President of SAM, overseeing project development. Notably, Liberty Gold CEO Cal Everett and director Greg Etter will join SAM’s board, maintaining alignment between the two entities.

This leadership overlap suggests a coordinated approach to de-risking the spinout while leveraging proven track records. Starr’s exit strategy at Cayden—a deal that delivered 40%+ returns to Cayden shareholders—adds credibility to his ability to execute value creation for SAM.

Bought Deal Financing: Funding Growth and Liquidity

Concurrently, Liberty Gold has secured a $20 million bought deal financing via Canaccord Genuity, with an over-allotment option to raise up to $23 million. The offering, priced at $0.33 per unit (including a half-warrant exercisable at $0.45), is set to close by April 22, 2025. Proceeds will fund Black Pine’s development, including permitting and feasibility studies, while bolstering liquidity.

The financing comes at a critical juncture. With gold prices hovering near $2,000/oz and Black Pine’s oxide gold deposits requiring minimal capital to bring into production, Liberty Gold aims to solidify its position as a low-cost producer. However, the offering’s modest size—relative to the $250M+ needed to fully develop Black Pine—hints at future equity raises or partnerships.

Market Dynamics: The Case for Antimony

SAM’s success hinges on antimony’s rising profile in global supply chains. China dominates antimony production, accounting for ~90% of global output, but U.S. policymakers are pushing for domestic alternatives. Antimony’s use in lithium-ion batteries and semiconductors aligns with Washington’s push to secure critical minerals for defense and clean energy.

Antimony oxide prices have surged 60% since 2020, driven by EV adoption and supply constraints. Specialty American’s oxide mineralization at Antimony Ridge—amenable to low-cost heap leach processing—could offer a competitive edge. However, the project’s economics will depend on securing offtake agreements and navigating permitting timelines.

Risks and Considerations

The spinout is not without challenges. Regulatory hurdles, particularly in Nevada (where Goldstrike is located), could delay SAM’s progress. Additionally, antimony’s market is small compared to base metals, with global production valued at ~$1.2 billion annually. SAM’s ability to attract investors in a sector dominated by China remains an open question.

For Liberty Gold, the spinout carries execution risk. Retaining only a minority stake in SAM may dilute its exposure to antimony’s upside, while the Black Pine project’s permitting timeline remains uncertain. Shareholders will need to weigh the potential for two companies to outperform against the complexity of managing dual portfolios.

Conclusion: A Strategic Play on Commodity Diversification

Liberty Gold’s spinout and financing represent a shrewd response to the fragmented commodity landscape. By separating its gold and critical minerals assets, the company aims to attract distinct investor cohorts: traditional gold investors for Black Pine and specialty metals-focused funds for SAM. The leadership team’s track record, coupled with antimony’s strategic importance, strengthens SAM’s prospects.

However, success will require patience. Black Pine’s permitting process could stretch into 2026, and antimony prices remain volatile. For now, the $23M financing provides a liquidity buffer, while the spinout’s execution will be a key near-term catalyst. Investors betting on U.S. critical minerals self-sufficiency and low-cost gold production may find merit in both entities—though the road to unlocking value remains lined with familiar risks in the mining sector.

In a market hungry for domestic mineral supply solutions, Liberty Gold’s restructuring could position it as a dual beneficiary of two powerful trends: the green energy transition and the reshoring of critical materials. The test will be whether the sum of the parts proves greater than the whole.