TUCSON, Ariz-- Liberty
Star Uranium & Metals Corp. (the �Company�) (OTCBB: LBSR) is
pleased to announce the Company has signed agreements for a non-brokered
financing arrangement of up to US$10,000,000 with Fairhills
Capital Offshore Ltd (�Fairhills Capital,� the
�Investor�). The financing allows but does not require the
Company to issue and sell up to the number of Common Stock shares having an
aggregate purchase price of US$10,000,000 to Fairhills
Capital.
Liberty
Star�s CEO, Jim Briscoe notes �The financing agreement with Fairhills allows us to obtain the kind of capital
required to move Liberty Star to a new phase of exploration activity.
We are not compelled to take down any specific amount of money; that decision
is entirely at our discretion. The terms of the Agreement are
such that we may continue to pursue financial arrangements and partnerships
with other entities. We intend to see our exploration plans through,
including geochemistry, ZTEM and core drilling, at Hay Mountain and other
Tombstone caldera targets, commencing as soon as we can start draw-downs.�
The terms
and conditions of the Financing Agreement (the �Agreement�) include:
�
The Open Period is 36 months from after the Effective Date. The Company must
register the stock in advance so that it is free trading when issued. That
will be done through the filing of a form S-1.
�
The Company may deliver a Put Notice from time to time throughout the Open
Period to the Investor that will be less than or equal to 200% of the average
daily volume of the Common Stock for the 10 trading days prior to the
applicable Put Notice Date.
�
The Common Stock Purchase Price will be 27.5% from the 5 day volume
weighted average price (VWAP) - a 27.5% discount - during the 5 trading days
immediately prior to receipt by the Investor of the Company�s Put Notice.
�
Fairhills Capital will not be entitled to a stock
ownership position exceeding 4.99% of the
number of Common Stock shares outstanding.
�
Fairhills Capital has agreed not sell the Company�s
stock short, either directly or indirectly through its affiliate, principals
or advisors.
�
Liberty Star has reserved 200,000,000 shares for issuance pursuant to the
Agreement. Draw-downs can commence after the Company registers with the SEC
the stock it intends to sell to Fairhills. It is
expected the process could take three to four months or possibly sooner.
The entire Agreement and all of the Company�s SEC
filings may be viewed on the EDGAR web
site.
�James A.
Briscoe� James A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty Star Uranium & Metals Corp.
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