NR 94 - LIBERTY STAR RECEIVES NOTIFICATION FROM COLLATERAL AGENT OF DEFAULT
News Release
94
Liberty Star Uranium & Metals Corp.
June 4, 2010
http://www.LibertyStarUranium.com
FOR
IMMEDIATE RELEASE
LBSR:OTCBB
LBV:
Frankfurt
LIBERTY STAR RECEIVES
NOTIFICATION FROM COLLATERAL AGENT OF DEFAULT
Tucson, Arizona – June 4, 2010 - Liberty Star
Uranium & Metals Corp (The “Company,” LBSR:
OTCBB) announces that on June 1, 2010
the Company was notified by the Collateral Agent for its Secured
Lenders as set forth on Schedule B (the "Notes") that the notes issued
on May 11, 2007 and August 28, 2008, May 21, 2009 and August 14, 2009
are past due and in default. Additionally, pursuant to section 4.6
of the Notes, such default is a cross default of all the Notes issued
to all the Secured Lenders.
The Secured
Lenders gave notice that the Notes are now due and owing in full and
demand that Liberty immediately make full payment of all principal,
interest, liquidated damages and all other sums due under the
Notes.
Liberty Star is engaged in discussions with
certain capital partners (lenders) to provide new capital (lending
facilities) sufficient to meet the demand of Secured
Lenders. These new capital sources, if closed, would allow Liberty
Star to restructure its balance
sheet while continuing normal business operations.
For the
board of directors,
“James A. Briscoe”
President & CEO
Liberty
Star Uranium Corp.
SAFE HARBOR
STATEMENT
Statements in this news release that are not
historical are forward looking statements. Forward-looking
statements in this news release include: that the Company may
successfully refinance our debt. Factors that may delay or prevent
these forward-looking statements from being realized include that no
lenders may provide financing on terms that are acceptable to our
company or at all. In the event that no alternative financing is
achieved, we will lose all our assets which are securing the current
debt that is in default. Readers
should refer to the risk disclosures outlined in the
Company’s recent 10-KSB and the
Company’s other periodic reports filed from time to time with the
Securities and Exchange Commission, and review the terms of our
outstanding debt obligations in documents filed on EDGAR.
Tracy
Myers
Investor
Relations
Liberty
Star Uranium & Metals Corp.
520-731-8786
