Liberty Star Announces, New Wholly Owned Subsidiary Hay Mountain Super Project LLC, Potential Funder Site Visit & Agreement o...
November 10 2014 - 9:30AM
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
CACEO/Chief GeologistLiberty 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
Agoracom Investor
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Star Uranium & Metals Corp.Tracy Myers, 520-425-1433Investor
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