Liberty Star Uranium and Metals Corp (LBSR)

[WillyburgD]

Yes. There will be dilution. It is an equity financing. That's what happens. Fairhills will buy the stock at a 27.5% discount and, at their election, sell it into the market (thus the S-1 reg statement that must be in effect).

The 5% is simply a limit as to ownership at one point in time, but it doesn't mean LBSR could not finance the entire 200M share allotment so long as Fairhills never holds more than 5% at any given point.

I don't know how else to explain this to you.