LIMA, Peru, April 11, 2011 /PRNewswire/ -- Li3 Energy, Inc. (OTC.BB: LIEG) ("Li3 Energy" or the "Company") is pleased to provide the following updates on various developments related to the Maricunga Project and possible strategic land acquisition in northern Chile.
- Our proposed acquisition of a 60% interest in the Maricunga lithium project in northern Chile is in the final stages of documentation. Our exclusivity period has been extended to April 26, 2011. We would purchase the 60% interest for US$6 million in cash and a number of shares of our common stock equal to 30% of our outstanding stock on a post-transaction basis, as well as certain contingent consideration upon the achievement of certain milestones.
- On February 7, 2011, the Company announced it had engaged SignumBOX (www.signumbox.com) in order to complete a project evaluation report for the Maricunga lithium project in Chile. The purpose of the report is to have an independent analysis on the Maricunga project. SignumBOX is a Chilean based company with extensive experience in the lithium industry and has developed the SignumBOX index ranking more than 70 lithium projects using a quantitative and objective method. SignumBOX has previously issued several reports regarding the use of lithium in batteries and vehicles and its prospects and trends. Our report has been completed, and the main highlights are:
- The Maricunga lithium project in its current state is ranked among the top 10 lithium projects in the world according to the Signum Performance Index (SPI) ranking. Additionally, SignumBOX stated that the project has the potential to become the leading lithium project based in salar brine-bearing deposits.
- The Maricunga project "has a General index slightly higher than the average, and moreover, its Geophysical index is 64% higher than the average. That means that the Company has the potential to improve its performance as they progress in the project and obtained the relevant permits."
- "Argentinian brine deposits have lower lithium and potassium concentrations. Regarding the other projects in Chile, the most important advantage that they have over Maricunga are the agreements that they have signed with international companies. But, all of them (except for one) have lower lithium and potassium concentrations. After Atacama, [the] Maricunga project is the second deposit of lithium in Chile in terms of its quality."
- An Executive Summary of the SignumBOX report will be available on our website when we close the Maricunga acquisition.
- Li3 Energy is also pleased to announce that it has now received a final Canadian National Instrument 43-101 compliant report on the Maricunga project, prepared by Don Hains.
- The report has concluded that "the Maricunga property holds significant potential for development as a source of lithium, potassium and boron. The Maricunga property can be considered as a Property of Merit."
- The report has outlined a $3.8mm work program on Maricunga that would result in a new NI 43-101 that supports estimation of Indicated and Measured Resources on the property and a Scoping/Prefeasibility Report for the project.
- The full report will be available on our website when we close of the Maricunga acquisition.
- Don Hains is the principal of Hains Technology Associates of Toronto, Ontario. A graduate of Queen's University, Kingston, Ontario in 1974 and a registered Professional Geoscientist in the Province of Ontario. Don has worked as a geoscientist for a total of 25 years. He has performed various economic geology studies related to production of lithium and potassium from brines and has performed evaluation studies of various salar brine deposits in Chile and Argentina (Pozuelos, Cauchari, Pocitos, Centenario, Hombre de Muerto, Diaballos, Atacama, Rincon). He is a "qualified person" as defined by NI 43-101.
- Li3 Energy is also pleased to report it is in the final stages of obtaining the land rights to 4,900 hectares in the vicinity of the Salar de Maricunga as a potential site for the processing facilities for the future development of the project.
- Li3 Energy's CEO, Luis Saenz, will be presenting at Byron Capital Markets 2nd Annual Electric Metals Conference in Toronto on Tuesday, April 12, 2011
Luis Saenz, CEO of Li3 Energy, stated: "These are exciting times for Li3 Energy. The reports on the Maricunga project validate our beliefs in the strength and merit of this acquisition. As we move closer to finalizing the acquisition of Maricunga, we are advancing in several other fronts, including appointments of new additions to our technical team and contractors for the work program to be performed. Li3 Energy also plans to expand and strengthen our Board of Directors with industry leaders, who we expect will add valuable technical, financial and intellectual capital as we prepare to commercialize Maricunga. Li3 Energy is also pursuing several other strategic initiatives that we feel could further strengthen and position the Company as a world leader and low cost provider of lithium and other minerals."
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 the additional subscription agreements that have been executed in the Offering; the Company's ability to timely satisfy the conditions to the Pacific Road Funds' obligations to purchase Units; 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.