LIMA, Peru, April 26, 2011 /PRNewswire/ -- Li3 Energy, Inc. (OTC.BB: LIEG) ("Li3 Energy" or the "Company") today announced that it is finalizing a one week extension to the agreement for the Company to acquire 60% ownership of the six companies that collectively own the Maricunga Project, which was set to expire on April 26, 2011.
On March 1, 2011, Li3 Energy announced that it had signed a binding agreement with the stockholders of six private companies to acquire 60% ownership of the companies, for US$6 million in cash and a number of shares of Li3 Energy common stock equal to 30% of the outstanding Li3 Energy stock on a post-transaction basis (the "Acquisition"). In addition, Li3 will be committing to invest a total of up to US$5 million in work programs on exploration and studies to advance Maricunga towards the feasibility study stage. Li3 Energy's obligation to close the Acquisition is subject to its financing of the cash purchase price and other customary conditions. Li3 will issue additional shares upon exercise of any options and warrants outstanding at the time of closing, in proportion to the sellers' percentage ownership as of closing.
About Li3 Energy, Inc.
Li3 Energy, Inc. is an early stage, U.S. public company currently pursuing a business strategy in the lithium mining and energy sector in the Americas, with an initial focus on identifying and acquiring opportunities in Peru, Argentina and Chile and the United States. Li3 Energy aims to acquire a significant portfolio of lithium brine deposits in the Americas for the purpose of development and production in order to meet growing market demand and to support the clean energy and green energy initiatives being implemented globally.
All statements other than statements of historical facts included in this news release including, without limitation, statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "estimates," "projects," "potential," "target," "goal," "plans," "objective," "should" or similar expressions or variations on such expressions are forward-looking statements. The Company can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause the Company's actual results to differ materially from the forward-looking statements, including, but not limited to: the Company's ability to successfully receive committed funds and close on subscription agreements that have been executed in its private placement offering; the Company's ability to timely satisfy the conditions to the Pacific Road Funds' obligations to purchase securities in such offering; the Company's ability to timely close on the Acquisition of interests in the Maricunga Project; the Company's ability to identify appropriate corporate acquisition and/or joint venture opportunities in the lithium mining sector and to establish the technical and managerial infrastructure, and to raise the required capital, to take advantage of, and successfully participate in such opportunities; future economic conditions; political stability; and lithium prices. For further information about certain risks faced by the Company, see "Risk Factors" in Part I, Item 1A of Amendment No. 1 to our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on November 5, 2010.
The Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
SOURCE Li3 Energy, Inc.