Joint venture Dynasty & Anglo AmericanThe newest PRELIMINARY estimate for Northern Dynasty's Pebble deposit is 66 million ounces of gold, possibly the largest gold deposit in the WORLD, plus 5 billion pounds of copper and 3 billion pounds of molybedenum, a specialty metal for steel that is growing in price, plus silver, palladium and rhenium. Rhenium is one of the rarest of all metals in the world. It has the third highest melting point of any element and is used as an alloy in metals such as steel and titanium. It is found in conjunction with ores of molybdenium and copper. And this rare metal is found in the Pebble deposit which is less than a mile from our Big Chunk deposit. Dynasty wants to include our deposit because of economy of scale and this is shown by their agreening to spend 10 million dollars on it for a 60% position. That means we retain a 40% position, which is a huge position on what may be multiple millions of ounces of gold and billions of pounds of molybdenum. Of course we don't know if any of our property has ore similar to Pebble, but for Dynasty to agree to consider spending that type of money, they must think that there is a good chance that the ore is there. If it is, even with our 500 million shares, we could go to the +$ range. So I will be buying more shares. After our parabolic up move I am sitting on the side lines, waiting to see if we back down some or a lot. When it looks like we have stabilized, I will buy more shares. It might go down some as people start to wonder if we are going to find a way to self destruct. But then most people thought that we were dead, but management was able to do an airborne scan, and since it indicated that we have interesting anomalies, this may have been one of the factors that led Northern Dynasty and its giant joint venture partners to decide on a joint venture with us. So I wouldn't count us out. This could be one of those stocks that go up over 100 times in price, meaning that a $1,000 investment would end up at $100,000, and a $10,000 investment would end up at $1,000,000. Nice odds.
This is theior news release:
Uranium & Metals Corp. July 8, 2010
LBSR:OTCBB LBV:Frankfurt
https://www.LibertyStarUranium.com
News Release 95
FOR IMMEDIATE RELEASE
LIBERTY STAR PAYS OUT CREDITORS, CONTRACTS WITH NORTHERN DYNASTY MINERALS LTD.
Tucson, Arizona – July 8, 2010 - Liberty Star Uranium & Metals Corp. (The “Company,” LBSR: OTCBB) 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.
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.