TUCSON, Ariz.--(BUSINESS WIRE)--Liberty Star Uranium & Metals Corp. (???Liberty
Star?????or the?????Company???)
(OTCQB:
LBSR) is pleased to announce progress on various matters:
1. 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."
2. 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.
3. 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.
4. 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.
5. 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
CEO/Chief Geologist
Liberty
Star Uranium & Metals Corp.
Forward Looking Statements
Statements 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.
View: Introduction
to Hay Mountain Project Presentation