Liberty Star Uranium and Metals Corp (LBSR)

[MineAllMine]

I a trying to research something I've mentioned before as an idea to get a deal on HM that would be satisfactory to both JB and to a JV partner who, admittedly, is taking on the large burden of risk--at least initially. I call it a multi-tiered contract but maybe there is a real word for it. Since the investor/partner is taking on a huge risk, that entity gets 70% of the profits up to a certain predetermined amount. Since the JV partner will spend $60 million, maybe it is fair to offer 70% all the way up to twice that or $120 million. That goal triggers a drop down to a second tier of, say, 60/40 until $300 million. After that, 50/50.

It would be an attractive return for the JV partner. On LBSR's side, it benefits the company and shareholders if the minerals are as valuable as shown by all the testing. Yes, LBSR has to compromise in the early stages. But maybe that is fair because of not only the risk of investing in a green company, but the fact that there will be no profits for a number of years (5? 6? more?).

I am trying to think of experts I can ask about this concept and also will look for precedents in other contracts, particularly those in the mining industry. Note that LBSR, in 3 of its claims areas, is in an ideal position to benefit from this type of arrangement because all testing has indicated world-class minerals that would pay investors back for years to come.