Liberty Star Lands $123,200 Convertible Note Financing From Monroe Street Capital
The Tucson-based mineral explorer will repay the one-year note at 8 percent interest, with the balance convertible into its common stock.
June 2, 2026
Liberty Star Uranium & Metals Corp., the Nevada-incorporated mineral exploration company that trades on the OTCQB under the symbol LBSR, has arranged a new round of debt financing through a private agreement with Monroe Street Capital Partners LP.
The two parties signed a securities purchase agreement on May 18, 2026, under which the company committed to issue a convertible promissory note to the lender. Liberty Star formally issued the note on May 26, 2026, in line with the terms of that agreement.
Terms of the Note
The financing carries several features that shape its real cost to the company:
- Principal of $123,200, which already incorporates a 10 percent original issue discount — meaning Liberty Star receives less than face value in cash while owing the full amount at maturity.
- An 8 percent annual interest rate, with the note coming due one year from the date of the agreement.
- A conversion right allowing Monroe Street to convert the outstanding principal and accrued interest into shares of Liberty Star common stock, following the mechanics set out in the note.
The conversion feature gives the lender a path to equity ownership and exposes existing shareholders to potential dilution if that right is exercised. The transaction also creates a direct financial obligation for the company, disclosed alongside the financing details. Copies of both the note and the securities purchase agreement were furnished as exhibits, with the purchase agreement dated April 15, 2026.
Why It Matters
Convertible notes of this kind are a common funding tool for small exploration companies that need working capital but have limited access to traditional bank lending or larger equity offerings. For a junior resource company like Liberty Star, the structure provides near-term liquidity — though the original issue discount, the interest cost, and the prospect of share issuance on conversion all add to the eventual price of the capital.
The report was signed on May 29, 2026, by Patricia Madaris, the company’s vice president of finance and chief financial officer.
