That’s a phenomenal jump for LBSR as its average traded volume totals 9.42 million shares.Following the records, we can see that Liberty Star hasn’t released much news recently. The last one dates back to 11 August this year, when the company reported that: “we granted stock options to certain of our directors, officers and employees of our company to purchase an aggregate of 95,500,000 shares of our common stock at an exercise price of $0.038 per share for a term expiring on August 10, 2015.” After the news was published, LBSR started to move up, though it fell down again in a while.[BANNER]
Liberty Star Uranium & Metals Corp. is an Arizona-based mineral exploration company engaged in the acquisition and exploration of mineral properties in the states of Arizona, Alaska, and Sonora, Mexico. Over the last year, the company has traded much lower, though since July the stock has started an uptrend and got overbought. Last Friday, LBSR closed at $0.101 and it kept the high trade. Though, no further news on the stock were released.
Last month, the company made a few positive announcements on its projects and filed its latest quarterly report. According to it, Liberty Star has not generated any revenues and it remained in the exploration stage. The company claimed that: “Our ability to pursue our business plan and generate revenues is subject to our ability to obtain additional financing, and we cannot give any assurance that we will be able to do so.”
In June this year, Liberty Star entered into a letter agreement with Northern Dynasty Minerals Ltd., whereby Northern Dynasty agreed to advance to the company funds for discharging its secured notes. However, LBSR registered a negative working capital of over $3 million and a net loss of approximately $398 thousand.
As of end-April, Liberty Star still had cash and cash equivalents in the amount of about $22 thousand, but it is not enough to cover the company’s losses. Though last week the stock continued the high trade, according to its quarterly report there is a going concern about the company as: “we have not generated any revenue, we have negative cash flows from operations, and negative working capital”.
