NR 95 - LIBERTY STAR PAYS OUT CREDITORS, CONTRACTS WITH NORTHERN DYNASTY MINERALS LTD.
News Release
95
Liberty Star Uranium & Metals Corp.
July 8,
2010
http://www.LibertyStarUranium.com
FOR
IMMEDIATE RELEASE LBSR:OTCBB
LBV:Frankfurt
LIBERTY STAR PAYS OUT CREDITORS, CONTRACTS WITH
NORTHERN DYNASTY MINERALS LTD.
Tucson, Arizona – July 8, 2010 -
Liberty Star
Uranium & Metals Corp announces that it has tendered into escrow full payout to its
Secured Lenders under convertible notes issued on May 11, 2007, August
28, 2008, May 21, 2009 and August 14, 2009. Those notes had been
declared in default (
NR 94). All security held by the Secured Lenders is in the process
of being released against payment of the escrowed funds. .
(The “Company,” LBSR: OTCBB)
In order to pay out its former lenders, the
Company has sold 60.7 square kilometers (23.4 square miles out of the
Company’s original 177 square miles, or 13% of its Big Chunk and
Bonanza Hills acreage) in consideration for both $1,000,000 cash
payment and a convertible loan from Northern Dynasty Minerals Ltd.
(“Northern Dynasty”) in the amount of $3,000,000. The purchase of
the claims and the loan are interdependent. The loan is secured by
the Company’s Big Chunk and Bonanza Hills
properties in Alaska and accrues interest at 10% per
annum.
As part of the transaction noted above, subject to
negotiating and signing a definitive earn-in option and joint venture
agreement, Northern Dynasty can earn a 60% interest in the Company’s
Big Chunk and Bonanza Hills projects in Alaska by spending $10,000,000
on those properties over six years. The borrowings from Northern
Dynasty may be applied as part of Northern Dynasty’s earn-in
requirements.
Northern Dynasty is a public company trading on
the TSX (NDM) and NYSEAmex (NAK) and, together with Anglo American, is
a 50% partner in the Pebble Limited Partnership and the Pebble
copper-gold-molybdenum project in southwest Alaska. The Pebble property
is located adjacent to the Company’s Big Chunk properties.
The Company continues to search for capital so
that it can maintain and develop its Arizona properties as well as the
Alaska Big Chunk project.
For the
board of directors,
“James A. Briscoe”
President & CEO
Liberty
Star Uranium & Metals 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 will negotiate
and sign a joint venture with Northern Dynasty and will secure
financing to maintain and develop its Arizona properties. Factors that
may delay or prevent these forward-looking statements from being
realized include that the terms of the joint venture cannot be agreed
and that no investors or 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 may lose all our assets. 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
info@libertystaruranium.com
