Liberty Star Uranium and Metals Corp (LBSR)

[monsterrat]

Correction: The note matures in one year after issuance.

Liberty Star Uranium & Metals Corp. (OTCPK:LBSR) announced a private placement of convertible promissory note with new investor, JMJ Financial Group Inc. for gross proceeds of $500,000 on August 14, 2013. The principal amount of note is $555,000 and the note was issued at a discount of $55,000. The note will mature in one year from the issuance. The note may be convertible into common shares at any time from 180 days after the date of each payment of consideration, at a conversion price which is 70% of the average of the three lowest closing prices in the 20 trading days previous to the conversion. The investor will invest $150,000 initially in first two tranches. The company may repay the note at any time on or before 90 days from the effective date of the note with an interest rate of 0%, after which the company may not make any further payments on the note prior to the maturity date without written approval from the investor. The company will pay one time interest of 12% if the company elects not to repay the note on or before 90 days from the effective date of the note