Liberty Star Uranium & Metals Corp. (OTC:LBSR), dba Liberty Star Minerals announced it has entered into an equity financing agreement with GHS Investments to raise up to $10 million.
In a statement Liberty Star said GHS Investments, a private investment group specializing in small-cap companies, aims to support Liberty Star in scaling its business.
Liberty Star has “put” rights for funds that can total $10 million over the two year term, essentially giving Liberty Star the option to sell shares to GHS and receive funding when needed, as its exploration needs arise.
The funds are earmarked to advance exploration efforts at the company’s Red Rock Canyon Gold Project, part of the larger Hay Mountain Project in southeast Arizona. The Red Rock Canyon area is believed to contain commercially significant metals, including gold, copper, and molybdenum.
Liberty Star's exploration work at the Red Rock Gold Property gained traction in March 2024. Chief Geologist Jim Bryce previously highlighted the importance of the site’s jasperoid outcropping and a database of historical findings, which spurred the initiation of an extensive channel sampling program.
Channel samples can be considered horizontal drill holes when surveyed, mapped, and sampled to industry standards, Bryce noted earlier this year.
Liberty Star plans to implement 3D modeling and further drilling as it works toward delineating a resource at Red Rock Canyon.