Liberty Star Uranium and Metals Corp (LBSR)

[StealthSwimmer]

I think it's a good time for some to review again, the NAK filings from Nov 15th. Rather than speculate on our relationship with Northern Dynasty, let the last filing from Northern Dynasty speak for itself:

http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003151

Noted are those sections specific to Liberty Star. Folks, this IS going to eventually come to fruition. All of the pieces are in place and we'll have more information in the very near future.




1.2.2.3 Purchase and Option Agreement with Liberty Star
On June 29, 2010, Northern Dynasty entered into a binding letter agreement with Liberty Star
Uranium and Metals Corp. and its subsidiary, Big Chunk Corp. (together, “LibertyStar”), pursuant to
which Liberty Star sold 23.8 square miles (60.7 square kilometers), the “Purchased Claims”, to
Northern Dynasty in consideration for a US$1 million cash payment and a secured convertible loan
from Northern Dynasty in the amount of US$3 million (the “Loan”). The Purchased Claims are held
by a US subsidiary of Northern Dynasty.
The purchase of the Purchased Claims and the Loan are interdependent. The Loan is secured by
Liberty Star’s Big Chunk and Bonanza Hills properties in Alaska and accrues interest at 10% per
annum calculated monthly. The Loan is repayable in cash or convertible into Liberty Star shares,
after Northern Dynasty has spent at least US$1 million earning into the joint venture (discussed
below).
In addition, subject to negotiating and signing a definitive earn-in option and joint venture
agreement, Northern Dynasty can earn a 60% interest in Liberty Star’s remaining Big Chunk and
Bonanza Hills projects in Alaska by spending US$10 million on those properties over six years. The
Loan from Northern Dynasty may be applied as part of the earn-in requirements, at Northern
Dynasty’s discretion.
For a limited period, the Pebble Partnership has a right to acquire the Purchased Claims upon
reimbursement of Northern Dynasty’s actual acquisition cost.

The Company recorded exploration costs of $653,000 (2009 – $11,000) as the Company initiated
and conducted two independent studies on the Pebble Project and completed exploration on the
Liberty Star claims. Salary costs for the period increased to $580,000 (2009 – $361,000) as a result
of US payroll related taxation payments for employees who worked on the Pebble Project and
continuing legal and due diligence activities relating to the Company’s purchase of the Liberty Star
claims (refer 1.2.2.3).

Loss for the period was $10.8 million as compared to $10.6 million in 2009. The increase is
attributable to certain additional US payroll taxes paid for employees working on the Pebble Project
and exploration work completed on the Liberty Star claims in the current year.

The Company incurred exploration costs of $950,000 (2009 – $80,000) as the Company completed
a work program amounting to $408,000 on the Liberty Star claims, published a technical report and
an update of mineral resources (refer to Exploration and Resources in Section 1.2.3), and initiated
and conducted two independent studies on the Pebble Project. Salary costs for the period increased
to $1,752,000 (2009 – $1,204,000) mainly as a result of US payroll related taxation payments for
employees working on the Pebble Project. The Company also incurred additional payroll costs as a
result of legal and due diligence activities relating to the Company’s purchase of the Liberty Star
claims (refer 1.2.2.3).

The Company’s total assets decreased to $147.2 million from $150.1 million. The decrease was
mainly attributable to the decrease in the carrying value of the Group’s investment in the Pebble
Partnership as a result of the exchange loss of $2.2 million recognized on translation (refer 1.5.2).
Cash and cash equivalents decreased by $5.2 million partly as a result of the purchase of the Liberty
Star claims for a consideration of approximately $1.1 million in cash and a loan advance of
$3.2 million. The Company utilized $4.4 million of its cash resources in its operations, earned
interest income of $0.3 million on cash balances held during the period and interest accrued on the
balance of the loan to Liberty Star, and received $3.4 million on issue of shares for cash as a result
of the exercise of share purchase options.

The total area of the properties is 186.7 square miles. The Purchased Claims are contiguous with
the Pebble Partnership claims and comprise 95 claims covering 23.8 square miles. The Big Chunk
South block, comprising 428 claims covering an area of 102.9 square miles, is north of and
contiguous with the Pebble Partnership claims. The 184 Big Chunk North claims are located
northwest of the Pebble property, and cover an area of 46 square miles. The 56 Bonanza Hills
claims cover a 14 square mile area located to the northeast of the Pebble property. Northern
Dynasty commissioned a 187 line km ZTEM geophysical survey that took place during the quarter
at a cost of approximately US$170,900.


The Company recorded exploration costs of $653,000 (2009 – $11,000) as the Company initiated
and conducted two independent studies on the Pebble Project and completed exploration on the
Liberty Star claims. Salary costs for the period increased to $580,000 (2009 – $361,000) as a result
of US payroll related taxation payments for employees who worked on the Pebble Project and
continuing legal and due diligence activities relating to the Company’s purchase of the Liberty Star
claims (refer 1.2.2.3)

Loss for the period was $10.8 million as compared to $10.6 million in 2009. The increase is
attributable to certain additional US payroll taxes paid for employees working on the Pebble Project
and exploration work completed on the Liberty Star claims in the current year.

The Company incurred exploration costs of $950,000 (2009 – $80,000) as the Company completed
a work program amounting to $408,000 on the Liberty Star claims, published a technical report and
an update of mineral resources