Liberty Star secures $79,200 promissory note with 10% interest By Investing.com

Liberty Star & Metals Corp. (OTCQB:LBSR), a metal mining company, has entered into a financial agreement with 1800 Diagonal Lending LLC, securing a promissory note for $79,200. The unsecured, interest-bearing note was issued on Monday and carries a 10% interest rate.

The Tucson, Arizona-based company, which operates under the industrial classification of metal mining, will see the note mature on March 15, 2025. It features a 16.67% Original Issue Discount and stipulates a repayment schedule of four set monthly cash payments starting six months from the effective date, which is June 13, 2024.

In the event of a default, the terms of the note allow for conversion into shares of Liberty Star’s common stock. However, the company has the option to prepay the note without any penalties.

InvestingPro Insights

As Liberty Star Uranium & Metals Corp. (OTCQB:LBSR) navigates its financial landscape with the new promissory note agreement, a look at the company’s latest metrics reveals a challenging picture. With a market capitalization of just $12.48M, the company’s financial performance shows significant headwinds. Notably, the company’s gross profit in the last twelve months as of Q1 2025 stood at a negative $1.22M, and its operating income was also in the red, with an adjusted figure of -$1.92M. These figures are indicative of the financial difficulties the company faces.

InvestingPro Tips for LBSR suggest caution, as the stock is currently in oversold territory according to the RSI, and has suffered a substantial decline over the past week. Additionally, the stock’s price has experienced a significant drop over the last month. However, it’s worth noting that there has been a high return over the past year, which may interest some investors looking at the longer-term performance.

Prospective investors should consider these factors and may find additional insights and tips on LBSR by visiting Investing.com’s InvestingPro. For those interested, there are 11 additional InvestingPro Tips available, which can be accessed with a subscription. Remember to use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription.

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