Liberty Star Uranium and Metals Corp (LBSR)

[PURA VIDA]

LBSR BUSINESS ACUMEN 101:

From the S-1/A - I had not seen this part before...but just consider that over 5 Million Dollars has been wasted to date on North Pipes and with that 5 Million Dollars - Not a single discovery.

Now, Hay Mountain or whatever name it will be called next week....
How much money will LBSR waste there ???

Hmmmmm.........

Drilling: In 2007 a drilling program was undertaken using both rotary drilling and core drilling. Rotary drilling was contracted by Boart Longyear. Diamond core drilling was completed by Redwall Drilling Inc., a former wholly owned subsidiary of Liberty Star. A total of 22 holes were drilled for a total of 16,226 feet of drilling. Important intersections of rock generally associated with producing breccia pipes were made. We did not intersect any ore mineralization during the drilling program.

Total costs including claim staking (initially in 2005), claim maintenance (see PART I ITEM1. Business. “Compliance with Government Regulation” in each Form 10K for the years ended January 31, 2006 through January 31, 2015) and a drilling program (exploratory) in calendar years 2007 and 2008, are $5,220,794.

And this is not such a good thing either -

At an assumed purchase price of $0.0034 we will be able to receive up to $1,190,000 in gross proceeds, assuming the sale of the 350,000,000 shares of our common stock pursuant to the investment agreement with Tangiers, being the number of shares being offered pursuant to this prospectus. As of the date hereof, we have received aggregate gross proceeds of $129,751 pursuant to the investment agreement with Tangiers from shares registered under the July 29, 2015 Amended Form S-1 Registration Statement. If we want to obtain the full $8,000,000 under the investment agreement, after the sale of 350,000,000 common shares of our stock pursuant to this Amended Form S-1 registration statement, we will have to register an additional 1,964,779,411 shares of our common stock.

It is quite evident that LBSR isn't going to be getting .0034 per share from Tangiers especially since they get the 20% discount and the fact that the stock price continues to go lower. I believe by the time that this S-1/A is effective, the stock price will probably be .0024 or lower, and then with the discount, Tangiers puts will be at .00192