Replies to post #128981 on Liberty Star Uranium and Metals Corp (LBSR)

[CEMJQ Multi-Millionaire]

Look at the most recent financials, observe the ballooning interest expense. Accruing interest & principle is now approaching $6 million.

Covenants of the loan are violated, with NAK having many avenues of recourse. Are they to stand back and watch this turd be driven into the ground? I doubt it.

[Eli's Gone]

As soon as the mess in the Alaska Court is rectified, I imagine we see a similar statement to this discharging our NAK obligations:

On November 14, 2012, we signed a loan settlement agreement with Northern Dynasty which would have discharged the $3,730,174 principal balance and $1,088,222 of accrued interest for the 2010 Convertible Note and would have terminated Northern Dynasty’s earn-in rights. In exchange for the settlement, we initiated the transfer of 199 Alaska mining claims to Northern Dynasty’s subsidiary, U5 Resources. However, since a third party filed liens against the claims before the transfer could be completed, we have not recorded the settlement transaction as of April 30, 2013, pending resolution of the lien claims. “We are unable to complete the settlement with Northern Dynasty while the lien claims are outstanding. We are vigorously disputing the lien claims and working to have them vacated.”