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by Mike Caswell

The U.S. Securities and Exchange Commission has halted Liberty Silver Corp., a company listed on both the OTC Bulletin Board and Toronto Stock Exchange that has roughly doubled in value over the past month. The SEC cites a lack of current and accurate information about the control of the company, its price and its trading. Although the SEC halt only applies to the OTC-BB, the TSX issued a halt of its own 30 minutes after the SEC notice, in which it said it trading would cease "pending company contact."

The SEC action comes after a four-week run in which Toronto-based Liberty Silver climbed to $1.58, up from 79 cents. The rise gave the company a market capitalization of $127.5-million, which is substantially higher than the $1.9-million in assets it recently reported in its June 30, 2012, balance sheet.

Although Liberty Silver has provided little news that would explain its rise, at least one stock tout recently said the company was worth even more than its present price. James West, who writes for an on-line tout sheet called the Midas Letter, calculated in a Sept. 27 report that the company's flagship Trinity project in Nevada is worth about $750-million (U.S.). He said that Trinity has 50 million ounces of silver which, when calculated on a per-share basis, work out to a value of $9.38. "Chop that in half for the sake of conservativeness, and you still get a price of $4.68 per common share outstanding," he figured. (He qualified the calculation by saying it was simplistic "non-43 101 compliant math.")

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