LIBERTY SILVER CORP. (OTCMKTS:LBSV) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On August 17, 2017, Liberty Silver Corp., a Nevada corporation (the “Company”), entered into the Bunker Hill Mining Lease with Option to Purchase (the “Lease”) with Placer Mining Corporation, a Nevada Corporation (the “Lessor”). to the Lease, the Lessor shall lease to the Company the right to conduct mineral exploration, development, and production activities on and in the Bunker Hill Mine, which consists of all that real property, mineral interests and patented and unpatented lode mining claims situated in Shoshone County, Idaho and further described and listed on Exhibit A of the Lease. A copy of the Lease is filed as Exhibit 10.1 hereto and is incorporated herein by this reference.

The primary term of the lease shall be twenty-four (24) months, beginning on November 1, 2017 and ending on October 31, 2019. The Company may extend the Lease for up to twelve (12) months by paying the Lessor an additional bonus payment of $600,000 and by continuing to pay the $100,000 monthly rent payment. At any time during the primary lease term or any extension thereto, the Company may exercise the option to purchase the Bunker Hill Mine for Forty-Five Million Dollars ($45,000,000). In the event the Company is in production for a minimum period of twelve months and at an average production rate at or exceeding 500 tons per day, the Lessor may, upon thirty (30) days written notice to the Company, require the Company to exercise the purchase option.

Lease Payments: The Company shall make lease payments to the Lessor as follows:

i.$100,000 upon the execution of the Lease for the maintenance expenses and upkeep of the mine for the month of September 2017;

ii.$100,000 on October 1, 2017 for the maintenance expenses and upkeep of the mine for the month of October 2017;

iii.$200,000 on or before November 1, 2017 for the November 2017 and December 2017 monthly rent payments;

iv.$500,000 on or before November 15, 2017 for a bonus payment;

v.$500,000 on December 15, 2017 for an additional bonus payment;

vi.$300,000 on January 1, 2018 for the January 2018, February 2018 and March 2018 monthly rent payments;

vii.$300,000 on April 1, 2018 for the April 2018, May 2018 and June 2018 monthly rent payments;

viii.$300,000 on July 1, 2018 for the July 2018, August 2018 and September 2018 monthly rent payments;

ix.$300,000 on October 1, 2018 for the October 2018, November 2018 and December 2018 monthly rent payments;

x.$300,000 on January 1, 2019 for the January 2019, February 2019 and March 2019 monthly rent payments;

xi.$300,000 on April 1, 2019 for the April 2019, May 2019 and June 2019 monthly rent payments;

xii.$300,000 on July 1, 2019 for the July 2019, August 2019 and September 2019 monthly rent payments; and

xiii.$100,000 on October 1, 2019 for the October 2019 monthly rent payment.

Purchase Option Payments: Should the Company choose to exercise the option to purchase the Bunker Hill Mine, or should the Lessor require the Company to exercise the purchase option, the Company shall make payments to the Lessor and to the United States Environmental Protection Agency (“U.S. E.P.A.”) as follows:

i.$4,000,000 to Lessor and $3,000,000 to U.S. E.P.A. on the Closing Date (which is the date the Company and Lessor close the purchase of the Bunker Hill Mine);

ii.$3,000,000 to Lessor and $3,000,000 to U.S. E.P.A. one (1) year after the Closing Date;

iii.$3,000,000 to Lessor and $3,000,000 to U.S. E.P.A. two (2) years after the Closing Date;

iv.$3,000,000 to Lessor and $3,000,000 to U.S. E.P.A. three (3) years after the Closing Date;

v.$2,000,000 to Lessor and $3,000,000 to U.S. E.P.A. four (4) years after the Closing Date;

vi.$1,670,000 to Lessor and $1,670,000 to U.S. E.P.A. five (5) years after the Closing Date;

vii.$1,670,000 to Lessor and $1,670,000 to U.S. E.P.A. six (6) years after the Closing Date;

viii.$1,670,000 to Lessor and $1,660,000 to U.S. E.P.A. seven (7) years after the Closing Date;

ix.$1,670,000 to Lessor eight (8) years after the Closing Date;

x.$1,670,000 to Lessor nine (9) years after the Closing Date; and

xi.$1,650,000 to Lessor ten (10) years after the Closing Date.

The U.S. E.P.A. has not approved the terms of this agreement or accepted the payments as a settlement of the any amounts allegedly due to the U.S. E.P.A for prior liabilities.

The foregoing summary description of the terms of the Lease may not contain all information that is of interest to the reader. For further information regarding the terms and conditions of the Lease, this reference is made to such lease, which is filed as Exhibit 10.1 and is incorporated herein by this reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information provided in Item 1.01 of this Current Report of Form 8-K is incorporated into this Item 2.03 by reference.

Item 9.01. Financial Statements and Exhibits

LIBERTY SILVER CORP Exhibit
EX-10 2 liberty_ex10z1.htm MINING LEASE WITH OPTION TO PURCHASE Exhibit 10.1 Exhibit 10.1   Bunker Hill Mining Lease with Option to Purchase   THIS MINING LEASE (the “lease”),…
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About LIBERTY SILVER CORP. (OTCMKTS:LBSV)

Liberty Silver Corp. is engaged in mineral exploration activities. The Company’s business operations are focused on exploring and developing the Trinity Silver property, which is located in Pershing County, Nevada (the Trinity Project). The Company is in the exploration phase of the Trinity Project. As of June 30, 2016, the Company’s Trinity Project consisted of approximately 10,020 acres, including 5,676 acres of fee land and 253 unpatented mining claims, located along the west flank of the Trinity Range in Pershing County, Nevada, approximately 25 miles northwest of Lovelock, Nevada, the county seat. As of June 30, 2016, 248 unpatented lode mining claims consisted of The Seka 1-6, 8-16, 61-64, 73-76, 95-112 claims; the TS 1-18 claims, and the XXX claims located in sections 4, 10, 16 and 21 in T29N, R30E. The Elm 1-183 is in sections 2, 4, 10, 16 T29N, R30E and sections 26, 28, 34 and 35 in T30N, R30E.