NR 192 – Liberty Star Announces New Wholly Owned Subsidiary, Hay Mountain Super Project LLC, Potential Funder Site Visit and Agreement on North Pipes Super Project Lease Option
FOR IMMEDIATE RELEASE
November 10, 2014 09:30 AM Eastern Standard Time
Liberty Star Announces, New Wholly Owned Subsidiary Hay Mountain Super Project LLC, Potential Funder Site Visit and Agreement on North Pipes Super Project Lease Option
- The Company has filed Articles of Organization with the Arizona Corporation Commission forming a wholly owned subsidiary named Hay Mountain Super Project LLC (“HMSP LLC” or the “Subsidiary”). The new Subsidiary is to manage Liberty Star’s premiere multi-target exploration property, the Hay Mountain Project, in southeast Arizona’s historic Tombstone mining district (Cochise County) for porphyry copper, gold, moly, silver, REEs and other associated metals. HMSP LLC will serve as the primary holding company for development of the potential ore bodies encompassed in the Hay Mountain area of interest covering some 42 square miles as identified by the extensive geological, geochemical and geophysical work, including ZTEM, performed to date. This is the first step toward establishing a corporate structure that will maximize operational and tax efficiencies, and enable the transfer of profits to Liberty Star Uranium & Metals Corp. where tax loss carry forwards can be used against positive cash flow, if any, from previous exploration expenses, while at the same time preserve the flexibility to engage joint enterprise investors in the independent development of multiple Hay Mountain targets as drilling verifies their candidacy as potential economically viable mining operations. Funding and management of the Hay Mountain Project and other Liberty Star surface studied and/or claimed lands totaling 42 square miles in the area will be administered through the Subsidiary.
Comments Jim Briscoe, Liberty Star’s CEO and Chief Geologist: “This progress toward assembling the corporate machinery forming the basis for attracting and engaging qualified joint enterprise investors to participate in developing the potentially extraordinary mineral content of the Hay Mountain properties, as documented in prior Liberty Star press releases, is a milestone event in Liberty Star’s growth. I am pleased and excited with our establishing this threshold into the next phase of revealing Hay Mountain’s potential as a world class mining district.”
- Liberty Star announces that the Company’s CEO/Chief Geologist Jim Briscoe and Director (mining engineer-attorney) Brett Gross will host a three day visit including a two day site visit to the Hay Mountain Project area for a potential funder from the Arabian Peninsula who has signed a non-disclosure agreement. This trip is tentatively planned before Thanksgiving, dependent only on US entry visa and travel arrangements. Accompanying the two parties will be an independent geologist/porphyry copper expert hired by the guest as well as an arms- length Registered Professional Geologist (RPG) who is experienced in a particular (classic) porphyry copper skarn deposit in the SW USA, participated in intensive postgraduate study of porphyry copper skarn deposits and has used vegetation geochemistry like that used by Liberty Star at Hay Mountain (and supervised by our Technical Board Member – and Geochemist, Shea Clark Smith) and is familiar with distal halos of the Hay Mountain type skarn mineralization. In addition to the Hay Mountain Project area, the visit will include ASARCO’s Mission Mine and the Bisbee mining district, both of which are corollaries to Hay Mountain (exposed rather than covered). The tour will also include two other similar porphyry copper drilling projects and one small porphyry copper production facility with exploration potential. During the trip in this mineral rich area there will also be viewings of dormant porphyry copper, gold and silver mines, including Tombstone itself. These sites, all within a 60 mile radius of the Hay Mountain Project, will demonstrate and solidify the similarity of other large porphyry copper operations to the as yet undrilled Hay Mountain which lies hidden beneath shallow cover. The trip will take two days and a 3rd day is reserved for a second review of the technical details of the Hay Mountain data, and discussion of Joint Venture parameters.
- The final Archaeological Assessment document has been finished by the Company’s contractor Antigua Archaeology LLC, and was submitted to the Arizona State Land Department (ASLD) for their final approval on November 5, 2014. No significant archaeological material was found and the report recommends approval of our proposal as written. According to the ASLD, response time is dependent on the length of the queue but should take place in 30 to 90 days. This is the final step in the long approval process. When ASLD final approval is received, Liberty Star is ready to drill as soon as funding is in place.
- The Company is getting more expressions of interest every day and expects to make additional presentation trips as described in number 2 until Phase 1 financing is attained. Currently there are three seemingly qualified entities that have expressed strong interest.
- For more than a year, lengthy negotiations have been ongoing with Genesis Group International Inc. to option the North Pipes Super Project (uranium) which lies just south of the Utah border. Genesis has developed a unique, proprietary type of equipment and process to mining breccia pipe type vertical mineral ore bodies. The Company has executed a letter agreement subject to formal legal drafting. This will involve an exchange of Liberty Star’s real property and intellectual property pertaining to the North Pipes/ Arizona Strip properties. In exchange Liberty Star will receive a significant monthly payment toward retirement of its expenditures on the North Pipes Project. It will also receive a gross royalty (NSR – Net Smelter [mill return] Royalty type, which is common in the mineral industry) on production that would result from all metal commodities coming from any mining of the pipes. It is expected that this could commence in about six months from now, at which time full financial and state support will become available. Profitable operation of the breccia pipes even at current low uranium prices is anticipated from this rapid and unique mining equipment and approach.
Concludes Briscoe: “Liberty Star is moving forward to capitalize on the hard work it has expended over a number of years. We have a very positive outlook about our future as a result of these recent and ongoing developments.”
“James A. Briscoe” James A. Briscoe, Professional Geologist, AZ CA
Liberty Star Uranium & Metals Corp.
Forward Looking StatementsStatements in this news release that are not historical are forward looking statements. Forward-looking statements in this news release include that the Hay Mountain Project is ready for drilling once we can obtain ASLD approval and financing for phase 1 drilling; that our project is prospective for many minerals; that we will be able to attract a partner/investor for the North Pipes uranium program; that our project will be profitable; and that we can come to a final agreement with Genesis. Factors which may delay or prevent these forward-looking statements from being realized include: the failure of our proposals or our Archeological Assessment to be accepted; we may not be able to raise sufficient funds to complete our intended exploration, keep our properties or carry on operations; and an inability to continue development due to weather, logistical problems, labor or equipment problems or hazards even if funds are available. Even if our proposals are accepted, we may not be able to carry out project development as contemplated. Despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures in the Company’s last 10-K and the Company’s other periodic reports filed from time to time with the Securities and Exchange Commission.
Agoracom Investor Relations
Liberty Star Uranium & Metals Corp.