Nevada
|
000-50071
|
90-0175540
|
||
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
Registrant’s telephone number, including area code
|
520-731-8786
|
1.
|
Closing of Loan Settlement by Purchase and Transfer of Settlement Claims
|
(a)
|
such registerable mining claim transfers, deeds and quitclaims (“
Transfers
”) as may be required by Northern Dynasty to convey good title to the Settlement Claims to NDM Subsidiary;
|
(b)
|
an opinion of its counsel stating that Liberty Star has taken all necessary corporate actions and proceedings to deliver the Transfers and transfer the Settlement Claims to NDM Subsidiary; and
|
(c)
|
copies of all filings evidencing the filing and application by Liberty Star of sufficient assessment work conducted by it during 2012 against the Settlement Claims in order to maintain the Settlement Claims in good standing until September 1, 2013, such filings to have been completed and filed to the satisfaction of Northern Dynasty acting reasonably.
|
2.
|
Liberty Star Representations
|
(a)
|
Liberty Star shall have all necessary corporate power and shall have taken all necessary corporate and other actions and proceedings to execute and deliver this letter agreement as a legal binding obligation. No third party consents shall be required to deliver title to the Settlement Claims hereunder;
|
(b)
|
no shareholder or regulatory approvals are required in order for it to enter into, and complete, the transactions contemplated under this letter agreement;
|
(c)
|
this letter agreement and the obligations assumed by Liberty Star herein do not conflict with any agreement, law, court judgement or order or governmental order to which Liberty Star is subject;
|
(d)
|
the Settlement Claims duly located, validly recorded and registered in the name of Big Chunk Corp., Big Chunk Corp. is the registered and beneficial owner of a 100% of the Settlement Claims, no third party has any financial or legal interest in the Settlement Claims whatsoever, and there are no royalty, lien, or other interests reserved in the Settlement Claims to Liberty Star or any other person;
|
(e)
|
there are no existing environmental remediation obligations relating to any of the Settlement Claims and no operations have taken place on them which were contrary to environmental or other applicable laws; and
|
(f)
|
Liberty Star has provided Northern Dynasty with a copy of all information about the Settlement Claims that is in its possession;
|
(g)
|
there are no tangible assets belonging to Liberty Star located on the Settlement Claims;
|
(h)
|
Liberty star has neither committed an act of bankruptcy, nor has been alleged to be insolvent by any creditor and is now and will be under no legal impediment from dealing with the Settlement Claims; and
|
(i)
|
no litigation or other proceeding or inquiry exists, or is pending or threatened against Liberty Star or which may affect the Settlement Claims, no party has alleged any basis to sue Liberty Star, and no party has threatened to do so.
|
3.
|
Liberty Star Covenants
|
(a)
|
it will not encumber the Settlement Claims in any way and will forthwith execute registerable transfer forms for the Settlement Claims;
|
(b)
|
it shall take all necessary steps to convey good title to the Settlement Claims to NDM Subsidiary on Closing and following Closing; and
|
(c)
|
it shall duly observe the terms of this letter agreement.
|
4.
|
Northern Dynasty Conditions to Closing
|
(a)
|
as of acceptance hereof by Liberty Star and as of Closing, all of the representations of Liberty Star will be true and all of its covenants shall have been fulfilled;
|
(b)
|
Liberty Star shall have applied against the Settlement Claims all assessment work conducted by it during 2012 on the Settlement Claims, and Northern Dynasty shall have been provided with copies of all filings evidencing the application of such work, completed and filed to Northern Dynasty’s satisfaction acting reasonably;
|
(c)
|
Northern Dynasty shall have been provided with valid Transfers for the Settlement Claims; and
|
(d)
|
no litigation shall have been initiated or threatened by any person or governmental authority to enjoin or inhibit the transactions contemplated hereby or which may, in the opinion of Northern Dynasty acting in its sole discretion, affect the Settlement Claims.
|
5.
|
General and Miscellaneous
|
(a)
|
This letter agreement will be deemed to have been made in British Columbia and will be enforceable in the Courts of British Columbia.
|
(b)
|
This letter agreement shall enure to the benefit of and shall be binding upon the parties hereto and their successors according to law.
|
(c)
|
Northern Dynasty may assign its rights under this letter agreement in whole or in part and from time to time provided that Northern Dynasty shall remain liable for its obligations hereunder.
|
(d)
|
This letter agreement may be executed in counterpart and by electronic transmission of a recognizable manual signature.
|
(e)
|
Each party shall both before and after Closing, execute such further documents and assurances and do such further acts, as may reasonably be required by the other party to effect the terms hereof and to ensure the valid transfer of good title to the Settlement Claims and the due extinguishment of the Loan and security related thereto.
|
6.
|
Execution
|
CLAIM NAME
|
ADL NO.
|
TOWN-SHIP
|
RANGE
|
SECTION
|
QUARTER
SECTION
|
QUARTER-QUARTER
SECTION
|
BC 338
|
642826
|
3S
|
35W
|
6
|
SW
|
|
BC 339
|
642827
|
3S
|
35W
|
6
|
SE
|
|
BC 351
|
642839
|
3S
|
35W
|
6
|
NW
|
|
BC 352
|
642840
|
3S
|
35W
|
6
|
NE
|
|
BC 353
|
642841
|
3S
|
35W
|
4
|
NW
|
|
BC 354
|
642842
|
3S
|
35W
|
3
|
NE
|
|
BC 355
|
642843
|
3S
|
35W
|
3
|
NW
|
|
BC 367
|
642855
|
2S
|
35W
|
31
|
SW
|
|
BC 368
|
642856
|
2S
|
35W
|
31
|
SE
|
|
BC 369
|
642857
|
2S
|
35W
|
32
|
SW
|
|
BC 370
|
642858
|
2S
|
35W
|
32
|
SE
|
|
BC 371
|
642859
|
2S
|
35W
|
33
|
SW
|
|
BC 372
|
642860
|
2S
|
35W
|
33
|
SE
|
|
BC 373
|
642861
|
2S
|
35W
|
34
|
SW
|
|
BC 374
|
642862
|
2S
|
35W
|
34
|
SE
|
|
BC 386
|
642874
|
2S
|
35W
|
31
|
NW
|
|
BC 387
|
642875
|
2S
|
35W
|
31
|
NE
|
|
BC 388
|
642876
|
2S
|
35W
|
32
|
NW
|
|
BC 389
|
642877
|
2S
|
35W
|
32
|
NE
|
|
BC 390
|
642878
|
2S
|
35W
|
33
|
NW
|
|
BC 391
|
642879
|
2S
|
35W
|
33
|
NE
|
|
BC 392
|
642880
|
2S
|
35W
|
34
|
NW
|
|
BC 393
|
642881
|
2S
|
35W
|
34
|
NE
|
|
BC 405
|
642893
|
2S
|
35W
|
30
|
SW
|
|
BC 406
|
642894
|
2S
|
35W
|
30
|
SE
|
|
BC 407
|
642895
|
2S
|
35W
|
29
|
SW
|
|
BC 408
|
642896
|
2S
|
35W
|
29
|
SE
|
|
BC 409
|
642897
|
2S
|
35W
|
28
|
SW
|
|
BC 410
|
642898
|
2S
|
35W
|
28
|
SE
|
|
BC 411
|
642899
|
2S
|
35W
|
27
|
SW
|
|
BC 412
|
642900
|
2S
|
35W
|
27
|
SE
|
|
BC 424
|
642912
|
2S
|
35W
|
30
|
NW
|
|
BC 425
|
642913
|
2S
|
35W
|
30
|
NE
|
|
BC 426
|
642914
|
2S
|
35W
|
29
|
NW
|
|
BC 427
|
642915
|
2S
|
35W
|
29
|
NE
|
|
BC 428
|
642916
|
2S
|
35W
|
28
|
NW
|
|
BC 429
|
642917
|
2S
|
35W
|
28
|
NE
|
|
BC 430
|
642918
|
2S
|
35W
|
27
|
NW
|
|
BC 431
|
642919
|
2S
|
35W
|
27
|
NE
|
|
BC 444
|
642932
|
2S
|
35W
|
19
|
SW
|
|
BC 445
|
642933
|
2S
|
35W
|
19
|
SE
|
|
BC 446
|
642934
|
2S
|
35W
|
20
|
SW
|
|
BC 447
|
642935
|
2S
|
35W
|
20
|
SE
|
|
BC 448
|
642936
|
2S
|
35W
|
21
|
SW
|
|
BC 449
|
642937
|
2S
|
35W
|
21
|
SE
|
|
BC 450
|
642938
|
2S
|
35W
|
22
|
SW
|
|
BC 451
|
642939
|
2S
|
35W
|
22
|
SE
|
|
BC 459
|
642947
|
2S
|
38W
|
24
|
NW
|
|
BC 460
|
642948
|
2S
|
38W
|
24
|
NE
|
|
BC 461
|
642949
|
2S
|
37W
|
19
|
NW
|
|
BC 462
|
642950
|
2S
|
37W
|
19
|
NE
|
|
BC 463
|
642951
|
2S
|
37W
|
20
|
NW
|
|
BC 464
|
642952
|
2S
|
37W
|
20
|
NE
|
|
BC 465
|
642953
|
2S
|
35W
|
19
|
NW
|
|
BC 466
|
642954
|
2S
|
35W
|
19
|
NE
|
|
BC 467
|
642955
|
2S
|
35W
|
20
|
NW
|
|
BC 468
|
642956
|
2S
|
35W
|
20
|
NE
|
|
BC 469
|
642957
|
2S
|
35W
|
21
|
NW
|
|
BC 470
|
642958
|
2S
|
35W
|
21
|
NE
|
|
BC 471
|
642959
|
2S
|
35W
|
22
|
NW
|
|
BC 472
|
642960
|
2S
|
35W
|
22
|
NE
|
|
BC 476
|
642964
|
2S
|
38W
|
15
|
SE
|
|
BC 477
|
642965
|
2S
|
38W
|
14
|
SW
|
|
BC 478
|
642966
|
2S
|
38W
|
14
|
SE
|
|
BC 479
|
642967
|
2S
|
38W
|
13
|
SW
|
|
BC 480
|
642968
|
2S
|
38W
|
13
|
SE
|
|
BC 481
|
642969
|
2S
|
37W
|
18
|
SW
|
|
BC 482
|
642970
|
2S
|
37W
|
18
|
SE
|
|
BC 483
|
642971
|
2S
|
37W
|
17
|
SW
|
|
BC 484
|
642972
|
2S
|
37W
|
17
|
SE
|
|
BC 485
|
642973
|
2S
|
37W
|
16
|
SW
|
|
BC 486
|
642974
|
2S
|
37W
|
16
|
SE
|
|
BC 487
|
642975
|
2S
|
37W
|
15
|
SW
|
|
BC 488
|
642976
|
2S
|
35W
|
18
|
SW
|
|
BC 489
|
642977
|
2S
|
35W
|
18
|
SE
|
|
BC 490
|
642978
|
2S
|
35W
|
17
|
SW
|
|
BC 491
|
642979
|
2S
|
35W
|
17
|
SE
|
|
BC 492
|
642980
|
2S
|
35W
|
16
|
SW
|
|
BC 493
|
642981
|
2S
|
35W
|
16
|
SE
|
|
BC 494
|
642982
|
2S
|
35W
|
15
|
SW
|
|
BC 495
|
642983
|
2S
|
35W
|
15
|
SE
|
|
BC 499
|
642987
|
2S
|
38W
|
15
|
NE
|
|
BC 500
|
642988
|
2S
|
38W
|
14
|
NW
|
|
BC 501
|
642989
|
2S
|
38W
|
14
|
NE
|
|
BC 502
|
642990
|
2S
|
38W
|
13
|
NW
|
|
BC 503
|
642991
|
2S
|
38W
|
13
|
NE
|
|
BC 504
|
642992
|
2S
|
37W
|
18
|
NW
|
|
BC 505
|
642993
|
2S
|
37W
|
18
|
NE
|
|
BC 506
|
642994
|
2S
|
37W
|
17
|
NW
|
|
BC 507
|
642995
|
2S
|
37W
|
17
|
NE
|
|
BC 508
|
642996
|
2S
|
37W
|
16
|
NW
|
|
BC 509
|
642997
|
2S
|
37W
|
16
|
NE
|
|
BC 510
|
642998
|
2S
|
37W
|
15
|
NW
|
|
BC 511
|
642999
|
2S
|
35W
|
18
|
NW
|
|
BC 512
|
643000
|
2S
|
35W
|
18
|
NE
|
|
BC 513
|
643001
|
2S
|
35W
|
17
|
NW
|
|
BC 514
|
643002
|
2S
|
35W
|
17
|
NE
|
|
BC 515
|
643003
|
2S
|
35W
|
16
|
NW
|
|
BC 516
|
643004
|
2S
|
35W
|
16
|
NE
|
|
BC 517
|
643005
|
2S
|
35W
|
15
|
NW
|
|
BC 518
|
643006
|
2S
|
35W
|
15
|
NE
|
|
BC 520
|
643008
|
2S
|
38W
|
10
|
SE
|
|
BC 521
|
643009
|
2S
|
38W
|
11
|
SW
|
|
BC 522
|
643010
|
2S
|
38W
|
11
|
SE
|
|
BC 523
|
643011
|
2S
|
38W
|
12
|
SW
|
|
BC 524
|
643012
|
2S
|
38W
|
12
|
SE
|
|
BC 525
|
643013
|
2S
|
37W
|
7
|
SW
|
|
BC 526
|
643014
|
2S
|
37W
|
7
|
SE
|
|
BC 527
|
643015
|
2S
|
37W
|
8
|
SW
|
|
BC 528
|
643016
|
2S
|
37W
|
8
|
SE
|
|
BC 529
|
643017
|
2S
|
37W
|
9
|
SW
|
|
BC 530
|
643018
|
2S
|
37W
|
9
|
SE
|
|
BC 531
|
643019
|
2S
|
37W
|
10
|
SW
|
|
BC 532
|
643020
|
2S
|
37W
|
10
|
SE
|
|
BC 533
|
643021
|
2S
|
37W
|
11
|
SW
|
|
BC 534
|
643022
|
2S
|
37W
|
11
|
SE
|
|
BC 535
|
643023
|
2S
|
37W
|
12
|
SW
|
|
BC 536
|
643024
|
2S
|
37W
|
12
|
SE
|
|
BC 537
|
643025
|
2S
|
36W
|
7
|
SW
|
|
BC 538
|
643026
|
2S
|
36W
|
7
|
SE
|
|
BC 539
|
643027
|
2S
|
36W
|
8
|
SW
|
|
BC 540
|
643028
|
2S
|
36W
|
8
|
SE
|
|
BC 541
|
643029
|
2S
|
36W
|
9
|
SW
|
|
BC 542
|
643030
|
2S
|
36W
|
9
|
SE
|
|
BC 543
|
643031
|
2S
|
36W
|
10
|
SW
|
|
BC 544
|
643032
|
2S
|
36W
|
10
|
SE
|
|
BC 545
|
643033
|
2S
|
36W
|
11
|
SW
|
|
BC 546
|
643034
|
2S
|
36W
|
11
|
SE
|
|
BC 547
|
643035
|
2S
|
36W
|
12
|
SW
|
|
BC 548
|
643036
|
2S
|
36W
|
12
|
SE
|
|
BC 549
|
643037
|
2S
|
35W
|
7
|
SW
|
|
BC 550
|
643038
|
2S
|
35W
|
7
|
SE
|
|
BC 551
|
643039
|
2S
|
35W
|
8
|
SW
|
|
BC 552
|
643040
|
2S
|
35W
|
8
|
SE
|
|
BC 553
|
643041
|
2S
|
35W
|
9
|
SW
|
|
BC 554
|
643042
|
2S
|
35W
|
9
|
SE
|
|
BC 555
|
643043
|
2S
|
35W
|
10
|
SW
|
|
BC 556
|
643044
|
2S
|
35W
|
10
|
SE
|
|
BC 558
|
643046
|
2S
|
38W
|
10
|
NE
|
|
BC 559
|
643047
|
2S
|
38W
|
11
|
NW
|
|
BC 560
|
643048
|
2S
|
38W
|
11
|
NE
|
|
BC 561
|
643049
|
2S
|
38W
|
12
|
NW
|
|
BC 562
|
643050
|
2S
|
38W
|
12
|
NE
|
|
BC 563
|
643051
|
2S
|
37W
|
7
|
NW
|
|
BC 564
|
643052
|
2S
|
37W
|
7
|
NE
|
|
BC 565
|
643053
|
2S
|
37W
|
8
|
NW
|
|
BC 566
|
643054
|
2S
|
37W
|
8
|
NE
|
|
BC 567
|
643055
|
2S
|
37W
|
9
|
NW
|
|
BC 568
|
643056
|
2S
|
37W
|
9
|
NE
|
|
BC 569
|
643057
|
2S
|
37W
|
10
|
NW
|
|
BC 570
|
643058
|
2S
|
37W
|
10
|
NE
|
|
BC 571
|
643059
|
2S
|
37W
|
11
|
NW
|
|
BC 572
|
643060
|
2S
|
37W
|
11
|
NE
|
|
BC 573
|
643061
|
2S
|
37W
|
12
|
NW
|
|
BC 574
|
643062
|
2S
|
37W
|
12
|
NE
|
|
BC 575
|
643063
|
2S
|
36W
|
7
|
NW
|
|
BC 576
|
643064
|
2S
|
36W
|
7
|
NE
|
|
BC 577
|
643065
|
2S
|
36W
|
8
|
NW
|
|
BC 578
|
643066
|
2S
|
36W
|
8
|
NE
|
|
BC 579
|
643067
|
2S
|
36W
|
9
|
NW
|
|
BC 580
|
643068
|
2S
|
36W
|
9
|
NE
|
|
BC 581
|
643069
|
2S
|
36W
|
10
|
NW
|
|
BC 582
|
643070
|
2S
|
36W
|
10
|
NE
|
|
BC 583
|
643071
|
2S
|
36W
|
11
|
NW
|
|
BC 584
|
643072
|
2S
|
36W
|
11
|
NE
|
|
BC 585
|
643073
|
2S
|
36W
|
12
|
NW
|
|
BC 586
|
643074
|
2S
|
36W
|
12
|
NE
|
|
BC 587
|
643075
|
2S
|
35W
|
7
|
NW
|
|
BC 588
|
643076
|
2S
|
35W
|
7
|
NE
|
|
BC 589
|
643077
|
2S
|
35W
|
8
|
NW
|
|
BC 590
|
643078
|
2S
|
35W
|
8
|
NE
|
|
BC 591
|
643079
|
2S
|
35W
|
9
|
NW
|
|
BC 592
|
643080
|
2S
|
35W
|
9
|
NE
|
|
BC 593
|
643081
|
2S
|
35W
|
10
|
NW
|
|
BC 594
|
643082
|
2S
|
35W
|
10
|
NE
|
|
BC 1171
|
649923
|
2S
|
37W
|
15
|
NE
|
|
BC 1172
|
649924
|
2S
|
37W
|
14
|
NW
|
|
BC 1173
|
649925
|
2S
|
37W
|
14
|
NE
|
|
BC 1174
|
649926
|
2S
|
37W
|
13
|
NW
|
|
BC 1175
|
649927
|
2S
|
37W
|
13
|
NE
|
|
BC 1176
|
649928
|
2S
|
37W
|
15
|
SE
|
|
BC 1177
|
649929
|
2S
|
37W
|
14
|
SW
|
|
BC 1178
|
649930
|
2S
|
37W
|
14
|
SE
|
|
BC 1179
|
649931
|
2S
|
37W
|
13
|
SW
|
|
BC 1180
|
649932
|
2S
|
37W
|
13
|
SE
|
|
BC 1187
|
649939
|
2S
|
37W
|
24
|
NW
|
|
BC 1188
|
649940
|
2S
|
37W
|
24
|
NE
|
|
BC 1196
|
649948
|
2S
|
37W
|
24
|
SW
|
|
BC 1197
|
649949
|
2S
|
37W
|
24
|
SE
|
|
BC 1001
|
643432
|
3S
|
35W
|
7
|
NW
|
NW
|
BC 1002
|
643433
|
3S
|
35W
|
7
|
NW
|
NE
|
BC 1003
|
643434
|
3S
|
35W
|
7
|
NE
|
NW
|
BC 1004
|
643435
|
3S
|
35W
|
7
|
NE
|
NE
|
BC 1005
|
643436
|
3S
|
35W
|
4
|
SE
|
NW
|
BC 1006
|
643437
|
3S
|
35W
|
4
|
SE
|
NE
|
BC 1007
|
643438
|
3S
|
35W
|
3
|
SW
|
NW
|
BC 1008
|
643439
|
3S
|
35W
|
3
|
SW
|
NE
|
BC 1009
|
643440
|
3S
|
35W
|
3
|
SE
|
NW
|
BC 1010
|
643441
|
3S
|
35W
|
3
|
SE
|
NE
|
News Release 144
Nov, 14, 2012
|
Liberty Star Uranium & Metals Corp.
LBSR: OTCQB
LBVN: Frankfurt
|
FOR IMMEDIATE RELEASE
|
http://www.libertystaruranium.com/
|