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Proactiveinvestors United Kingdom Li3 Energy http://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Li3 Energy RSS feed en Wed, 23 May 2012 05:29:54 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Li3 Energy closes first tranche of funding with South Korea's POSCO ]]> http://www.proactiveinvestors.co.uk/companies/news/33429/li3-energy-closes-first-tranche-of-funding-with-south-koreas-posco-33429.html Li3 Energy (OTCBB:LIEG) said Wednesday that it has closed the first tranche of funding with its strategic partner, South Korea-based industrial company POSCO (NYSE:PKX), with the financing round totaling $8 million.

In August, lithium explorer Li3 announced that it had, after months of negotiations, signed a formal agreement with POSCO for the joint exploration and development of Li3's Maricunga project in Chile.

POSCO, with operations in energy, chemicals and materials, is one of the largest steel manufacturers in the world, with $60 billion in annual revenues.

The South Korean company invests in several resource development projects globally, especially lithium properties. This is because one of the primary uses for lithium is in the production of batteries for hybrid and electric vehicles.

As demand for these cars increase, so will the world's requirements for lithium, resulting in many battery and automakers in Korea and Japan partnering with lithium exploration companies to ensure a steady supply.

Li3, with a controlling interest in Maricunga, is focused on implementing the exploration and development plan for the property, including securing well drilling contractors, seismic surveyors, and engineering firms, as well as the necessary government permits to advance the project.

Under the terms of the agreement between the two companies, POSCO intially invested $8 million through the purchase of Li3 units at 21 cents each, which has now been completed. Each unit comprises one share of common stock and a three-year warrant.

In addition, POSCO committed in August to a follow-on investment of $10 million additional units once certain conditions are satisfied, including an NI 43-101 compliant report that concludes that a feasibility study phase for the project is warranted, the completion of Li3's proposed work program, and having the necessary permits and approvals in place for operating a brine test facility on the property.

As part of the deal and concurrent with the closing of the first tranche of funding, POSCO's designated director Hyundae Kim was appointed to Li3's board, from which David Rector and Kjeld Thygesen also resigned.

Since November 2009, Kim has worked for POSCO, where he serves as a director in the growth and investment division, reviewing a number of investment projects and alternatives including mergers and acquisitions, joint ventures and organic growth projects. He has also previously worked for ILJIN Materials, a Korean business-to-business company, and the Korean Ministry of Commerce, Industry and Energy.

“We look forward to working together as we execute on all aspects of our development plan and advance the project towards completing the milestones for the second tranche of their investment, including, achieving a Measured and Indicated NI 43–101 Resource Report," said CEO of Li3, Luis Saenz.

"I am extremely grateful to the entire POSCO team for their efficient and collaborative effort allowing this transaction to close in such a short period of time.

"We welcome Mr. Kim to the Board where his leadership, experience and contributions will be of great value.”

The two companies are now set to discuss the development, financing and construction of a test facility on the Maricunga property, which has been independently ranked as one of the top eleven lithium projects in the world, with the potential to become the largest lithium-based salar in brine-bearing deposits.

Li3, which looks for lithium properties in Peru, Argentina and Chile, has begun the initial $3.8 million development work program on the project, placing Maricunga into feasibility stage. A preliminary economic assessment report is anticipated by the end of the fourth quarter.

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

]]> Wed, 21 Sep 2011 18:14:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/33429/li3-energy-closes-first-tranche-of-funding-with-south-koreas-posco-33429.html <![CDATA[Li3 Energy secures $18 million funding for development plan ]]> http://www.proactiveinvestors.co.uk/companies/news/32529/li3-energy-secures-18-million-funding-for-development-plan-32529.html Lithium and minerals exploration company Li3 Energy Inc (OTCBB:LIEG) Tuesday secured $18 million in funding from POSCO Canada Ltd, a subsidiary of South Korea-based industrial company POSCO (NYSE:PKX) to develop an exploration and development plan for its Maricunga project in northern Chile.

The first, $8.0 million tranche will see the end of several exploration programs, including the completion of a measure and indicated mineral resource on the property.

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

Projects estimated for completion in the fourth quarter of fiscal 2011 include the seismic survey and modeling, and core sample drilling.

Li3 Energy also intends to complete a well drilling program, which will utilize a reverse circulation (RC) drill to develop wells for the uptake of water in all types of terrain on the property, and a pump test program which will evaluate the hydraulic guidelines on the property and measure their response, and will supply brine for future testing.

Slated for completion in the first quarter of fiscal 2012, Li3 Energy said it will have finished a laboratory process simulation, which will examine two potential process routes to the labs, as well as generate scale-quantities of the lithium carbonate product.

The company has also selected Peter Ehren to prepare a plan development program for the Maricunga property, which will also be completed in the first quarter.

Li3 Energy will also construct a test facility near the property to collect data for the development plan.

The company also hopes to complete its evaluation of a technology patented by R3 Fusion Inc, which is designed to separate and recover pure water from highly concentrate brine solutions.

Also with a first quarter expected completion date, is the resource evaluation on the property. Li3 Energy said it expects to upgrade the resources at Maricunga to the measured and indicated category.

Historical work over the property has calculated a non compliant mineral resource of 224,300 tonnes of lithium and 3.27 million tonnes of potash. However, a report, released in May 2011, estimates that it is possible to develop an NI 43-101 compliant resource similar to the historical one.

Initial drilling at Maricunga estimated assay values of 1.1 grammes per litre (g/L)lithium, 7.93 g/L potassium, 1.81 q/L boron and 6.6 g/L magnesium.

The company also expects to complete an environmental impact study (EIS) by the fourth quarter of fiscal 2012, which is required for the permitting of a commercial production facility that can use brine from the project.

"Li3 looks forward to further advancing our Maricunga Project," said COO Thomas Currin.

"We have announced several initiatives including our strategic partnership with POSCO and the development and demonstration program with R3 Fusion.

Together with our partners and contractors, utilizing their respective technical expertise, skills sets and proprietary intellectual property, our objective is to advance Maricunga to an advanced stage of commercialization in an accelerated manner.

"The timelines we have detailed should provide our stakeholders a basis to measure our progress."

Li3 Energy's stock on the OTC Bulletin Board rose up to 3.33% today, but, as of 2:37 pm EDT, was trading flat at $0.15 per share.

]]> Tue, 30 Aug 2011 20:17:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/32529/li3-energy-secures-18-million-funding-for-development-plan-32529.html <![CDATA[Li3 Energy inks formal development deal with South Korea's POSCO for Maricunga ]]> http://www.proactiveinvestors.co.uk/companies/news/32428/li3-energy-inks-formal-development-deal-with-south-koreas-posco-for-maricunga--32428.html Lithium explorer Li3 Energy (OTCBB:LIEG) announced Thursday that it has, after months of negotiations, signed a formal agreement with South Korea-based industrial company POSCO (NYSE:PKX) for the joint exploration and development of Li3's Maricunga project in Chile.

POSCO, with operations in energy, chemicals and materials, is one of the largest steel manufacturers in the world, with $60 billion in annual revenues.

The South Korean company invests in several resource development projects globally, especially lithium properties.
This is because one of the primary uses for lithium is in the production of batteries for hybrid and electric vehicles.

As demand for these cars increase, so will the world's requirements for lithium, resulting in many battery and automakers in Korea and Japan partnering with lithium exploration companies to ensure a steady supply.

"We began earnest discussions in March of this year and to consummate this transaction in less than six months is testament to the extraordinary efforts by a dynamic, proactive and extremely professional team from POSCO and the cooperation and ability of Li3’s management team and advisors," said Li3 CEO, Luis Saenz.

Li3, with a controlling interest in Maricunga, is focused on implementing the exploration and development plan for the property, including securing well drilling contractors, seismic surveyors, and engineering firms, as well as the necessary government permits to advance the project.

Under the terms of the agreement between Li3 and POSCO, POSCO will initially invest $8 million through the purchase of Li3 units at 21 cents each. Each unit comprises one share of common stock and a three-year warrant.

In addition, POSCO has committed to a follow-on investment of $10 million additional units once certain conditions are satisfied, including an NI 43-101 compliant report that concludes that a feasibility study phase for the project is warranted, the completion of Li3's proposed work program, and having the necessary permits and approvals in place for operating a brine test facility on the property.

After the initial $8 million contribution, the two companies will discuss the development, financing and construction of a test facility on the Maricunga property. As part of the partnership, Li3 will also appoint a director nominated by POSCO to its board.

"Being chosen as one of their lithium and other minerals project partners, coupled with the financial and technical support this relationship brings and the potential commercial opportunities we hope to derive from a global strategic partner of this magnitude, we believe speaks to the strength of Li3, the merit of Maricunga, and potential of our future plans," added Saenz.

Maricunga has been independently ranked as one of the top eleven lithium projects in the world, with the potential to become the largest lithium-based salar in brine-bearing deposits.

The report by SignumBOX concluded that securing a multi-national strategic off-take partner was one of the missing elements that could elevate the project even further, said the company.

As this feat has now been achieved, the project has yet to secure Chilean government approvals, but once this is accomplished, the property will have even more upside potential.

Li3, which looks for lithium properties in Peru, Argentina and Chile, has begun the initial $3.8 million development work program on the project, placing Maricunga into feasibility stage. A preliminary economic assessment report is anticipated by the end of the fourth quarter.

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

]]> Fri, 26 Aug 2011 20:02:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/32428/li3-energy-inks-formal-development-deal-with-south-koreas-posco-for-maricunga--32428.html <![CDATA[Li3 Energy signs agreement to improve lithium brine processing at Maricunga ]]> http://www.proactiveinvestors.co.uk/companies/news/30019/li3-energy-signs-agreement-to-improve-lithium-brine-processing-at-maricunga-30019.html Peru-based Li3 Energy (OTCBB:LIEG) announced Wednesday an agreement with New York-based environmental technology business R3 Fusion to work on improving the methods used for lithium brine processing at the company's Maricunga project in Chile, independently ranked as one of the top ten lithium projects in the world.

The memorandum of understanding document sets out terms for R3's SPaCeR technology to shorten the current natural evaporation cycle at Maricunga from its estimated duration of roughly 18 months.

Under the agreement, R3 will attempt to show the efficacy of its technology for the concentration of lithium chloride solutions, while the two companies will also seek a commercial deal to deploy the technology exclusively for lithium brine processing within six months of a successful demonstration program.

If successful, R3 will design and construct systems appropriate for the volumes and economics associated with Li3's requirements.

"We are very excited to explore the use of the R3 Fusion SPaCeR Technology and its applications in lithium brine processing," said CEO of Li3, Luis Saenz.

"This technology possibly presents Li3 with a unique, energy efficient, green technology that not only could shorten our exploration timelines but also helps us capture and purify the water, allowing us to either use it in other areas of the salar or sell it to other commercial entities.

"We look forward to working through this evaluation stage together with R3 which could further align our companies in a mutually beneficial manner."

R3 is focused on applying its new technology to address global challenges in environmental and water issues including desalination, industrial and municipal wastewater treatment, water recovery and reuse, bio-fuel processes and fine chemical synthesis.

Li3, which looks for lithium properties in Peru, Argentina and Chile, has begun the initial $3.8 million development work program on the project, placing Maricunga into feasibility stage. A preliminary economic assessment report is anticipated by the end of the fourth quarter.

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

]]> Wed, 29 Jun 2011 19:39:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/30019/li3-energy-signs-agreement-to-improve-lithium-brine-processing-at-maricunga-30019.html <![CDATA[Li3 Energy reports Maricunga is highly ranked by latest SignumBOX report ]]> http://www.proactiveinvestors.co.uk/companies/news/29277/li3-energy-reports-maricunga-is-highly-ranked-by-latest-signumbox-report-29277.html Li3 Energy (OTC:LIEG) announced Thursday that its Maricunga project in Chile was independently ranked by local firm SignumBOX as among the top 11 lithium projects in the world, of 50 other such deposits.

According to the report, which was commissioned by Li3, the project has a SignumBOX General Index of 3.23, slightly higher than the average, while its SignumBOX Geophysical Index of 3.60 is 50% higher than the average.

According to SignumBOX, since Maricunga is at an early stage, the company has the potential to improve both indexes, with a 5.0 score being the higest, and become the number one lithium project in salar-bearing brine deposits.

Indeed, the property, in which Li3 has a controlling interest, has the potential to be a source of lithium, potassium and boron. The company recently signed a deal with one of the world's largest steel manufacturers, South Korea-based POSCO (NYSE:PKX), to jointly explore and develop the Maricunga project, including the establishment of a commercial plant.

This is because one of the primary uses for lithium is in the production of batteries for hybrid and electic vehicles. As demand for these cars increase, so will the world's requirements for lithium, resulting in many battery and automakers in Korea and Japan partnering with lithium exploration companies to ensure a steady supply.

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

"These are very exciting times for Li3, as we are making excellent progress in our initial development site work at Maricunga," said COO Tom Currin.

"We are thrilled with the latest SignumBOX Index results and Li3 is extremely confident in completing the items listed to improve our performance index ranking and possibly achieving the #1 ranking."

The company said indexes could be improved by confirming lithium and potassium concentrations at the site, as well as by the completion of a pre-feasibility study, and the receipt of government and environmental approvals. Furthermore, the start of the construction of a pilot plant at the project would also boost its score on the indexes.

Maricunga is located in close proximity to the mining city of Copiapo, and sodium chloride and other potassium salts could potentially be by-products from the site, placing the project at an advantage to other Chilean salars. Maricunga also has one of the highest lithium concentrations, extensions and lithium potassium ratios.

After the Atacama project in Chile, Li3's Maricunga has the second highest quality deposit of lithium in the country, said SignumBOX.

Historical work over Maricunga has calculated a non compliant mineral resource of 224,300 tonnes of lithium and 3.27 million tonnes of potash. A recent report estimates that it is possible to develop an NI 43-101 compliant resource similar to the historical one.

In addition, production from the property is expected to be lower cost than other Chilean salars, as sulphate in the brine is unusually low, reducing the need for additional reagents for sulphate removal. Electrical and road infrastructure is also in place to support preliminary development.

 Li3, which looks for lithium properties in Peru, Argentina and Chile, has begun the initial $3.8 million development work program on the project, placing Maricunga into feasibility stage. A preliminary economic assessment report is anticipated by the end of the fourth quarter.

]]> Fri, 10 Jun 2011 19:06:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/29277/li3-energy-reports-maricunga-is-highly-ranked-by-latest-signumbox-report-29277.html <![CDATA[Li3 reports positive NI 43-101 compliant findings from technical report on Marincunga ]]> http://www.proactiveinvestors.co.uk/companies/news/28833/li3-reports-positive-ni-43-101-compliant-findings-from-technical-report-on-marincunga-28833.html Li3 Energy (OTCBB:LIEG) announced Tuesday the findings of an NI 43-101 compliant technical report on its Maricunga lithium brine property in northern Chile, independently ranked as one of the top ten lithium projects in the world.

The report, conducted by Hains Technology Associates, concludes that Maricunga can be considered a "property of merit", as it holds sufficient exploration potential to warrant further cost to advance the project to pre-feasibility stage.

Indeed, the property, in which Li3 has a controlling interest, has the potential to be a source of lithium, potassium and boron. The company recently signed a deal with one of the world's largest steel manufacturers, South Korea-based POSCO (NYSE:PKX), to jointly explore and evaluate the development of the Maricunga project, including the establishment of a commercial plant.

This is because one of the primary uses for lithium is in the production of batteries for hybrid and electic vehicles. As demand for these cars increase, so will the world's requirements for lithium, resulting in many battery and automakers in Korea and Japan partnering with lithium exploration companies to ensure a steady supply.

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

According to the NI 43-101 compliant report, exploration work at Maricunga has indicated that the brines are enriched in lithium and potassium, from which lithium can be recovered at a good rate.

The company also noted the relatively high boron concentration in the brine, which should permit high extraction rates for the recovery of boric acid, a valuable co-product.

Historical work over Maricunga has calculated a non compliant mineral resource of 224,300 tonnes of lithium and 3.27 million tonnes of potash. The recent report estimates that it is possible to develop an NI 43-101 compliant resource similar to the historical one.

Initial drilling at the property estimated assay values of 1.1g/L lithium, 7.93 g/L potassium, 1.81 q/L boron and 6.6 g/L magnesium.

In addition, production from the property is expected to be lower cost than other Chilean salars, as sulphate in the brine is unusually low, reducing the need for additional reagents for sulphate removal. Electrical and road infrastructure is also in place to support preliminary development.

"The findings of the NI 43 -101 and other preliminary data support our opinion of the strength of this strategic asset," said COO Tom Currin.

Other data compiled from earlier findings is expected to be further validated with the completion of a preliminary economic assessment report for Maricunga, which Li3 is anticipating by the end of the 4th quarter.

"Armed with this data, Li3 looks forward to the future and unlocking the full potential of Maricunga, commercializing the asset and creating value for all of our stakeholders and strategic partners," added CEO Luis Saenz.

Li3, which looks for lithium properties in Peru, Argentina and Chile, has begun the initial $3.8 million development work program on the project.

]]> Tue, 31 May 2011 20:11:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/28833/li3-reports-positive-ni-43-101-compliant-findings-from-technical-report-on-marincunga-28833.html <![CDATA[Li3 Energy completes Maricunga acquisition ]]> http://www.proactiveinvestors.co.uk/companies/news/28571/li3-energy-completes-maricunga-acquisition-28571.html Li3 Energy (OTCBB.LIEG) said Tuesday that it has closed the acquisition for a 60% stake in the six companies that collectively own the Maricunga lithium project in northern Chile.

"The Maricunga project was aggressively pursued and the closing is a major milestone that now establishes Li3 as a dominant lithium and minerals exploration company," said CEO Luis Saenz.

"This strategic acquisition should become a flagship property and create long-term value to all of our stakeholders.

"We plan to start our work program expenditures as soon as possible and have already started several tender processes for the camp and drilling programs."

Under the terms of the agreement, Li3 has paid US$6.4 million in cash and 30% of its shares. The company has also agreed to pay consideration dependent on the project achieving certain goals.

In early February, the company announced it hired Chilean-based SignumBOX to complete an evaluation report on Maricunga, with results indicating that the property has the potential to become "the leading lithium project based in salar brine-bearing deposits".

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama. An independent NI 43-101 compliant analysis determined that the project is a "property of merit", which holds signficant potential for development as a source of lithium, potassium, iodine and boron.

Li3 said that it has now begun the feasibility phase on Maricunga, and has started the initial $3.8 million work development program on the project. To pay for the work and acquisition, the company recently completed an $8.9 million financing.

]]> Tue, 24 May 2011 20:39:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/28571/li3-energy-completes-maricunga-acquisition-28571.html <![CDATA[Li3 Energy says Maricunga acquisition is near close ]]> http://www.proactiveinvestors.co.uk/companies/news/28225/li3-energy-says-maricunga-acquisition-is-near-close-28225.html Li3 Energy (OTCBB:LIEG) said Friday that it is in the process of finalizing its acquisition for a 60% stake in the six companies that collectively own the Maricunga lithium project in northern Chile.

"We have been diligently working with the sellers to complete this transaction and we will be making an announcement regarding the matter in the forthcoming days," said CEO Luis Saenz in a statement.

The company said the process has taken longer than expected, but it is in the final steps of closing the deal.

Under the terms of the agreement, Li3 will purchase 60% of the project for US$6 million in cash and 30% of its shares. Li3 has also agreed to pay consideration dependent on the project achieving certain goals.

In early February, the company announced it hired Chilean-based SignumBOX to complete an evaluation report on Maricunga, with results indicating that the property has the potential to become "the leading lithium project based in salar brine-bearing deposits".

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

Li3 is focused on identifying and acquiring lithium brine opportunities in Peru, Argentina and Chile and the US.

]]> Fri, 13 May 2011 20:45:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/28225/li3-energy-says-maricunga-acquisition-is-near-close-28225.html <![CDATA[Li3 forms strategic partnership with South Korea's POSCO for Maricunga development ]]> http://www.proactiveinvestors.co.uk/companies/news/28031/li3-forms-strategic-partnership-with-south-koreas-posco-for-maricunga-development-28031.html

Li3 Energy (OTC:LIEG) said Monday it has signed an agreement with one of the world's largest steel manufacturers, South Korea-based POSCO (NYSE:PKX), to jointly explore and evaluate the development of its Maricunga lithium brine project, including the establishment of a commerical plant.

One of the primary uses for lithium is in the production of batteries for hybrid and electic vehicles. As demand for these cars increase, so will the world's requirements for lithium, resulting in many battery and automakers in Korea and Japan partnering with lithium exploration companies to ensure a steady supply.

Li3 is in the final stages of acquiring a 60% interest in the Maricunga property in northern Chile, independently ranked as one of the top 10 lithium projects in the world.

Under the strategic partnership between Li3 and POSCO, the two companies will explore a broad range of interactions, including the establishment of a pilot and commercial plant to produce lithium carbonate products, and future off-take agreements.

POSCO said it may invest capital in the two plants in exchange for equity in Li3.

"Being evaluated and chosen as a potential strategic lithium and other minerals project as well as having the opportunity to explore financial, technical, and commercial opportunities with a global strategic partner of this magnitude speaks to the strength of our plans as we move towards commercializing Maricunga," said Li3 CEO Luis Saenz.

In addition, until June 30th, POSCO has the option to purchase up to $25 million of Li3 units at $0.27 each. Each unit will consist of one Li3 share of common stock and a three-year warrant to purchase one half of one common share.

]]> Mon, 09 May 2011 19:16:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/28031/li3-forms-strategic-partnership-with-south-koreas-posco-for-maricunga-development-28031.html <![CDATA[Li3 close to acquiring 60% of Maricunga, among top 10 lithium projects globally ]]> http://www.proactiveinvestors.co.uk/companies/news/27308/li3-close-to-acquiring-60-of-maricunga-among-top-10-lithium-projects-globally-27308.html Li3 Energy (OTCBB:LIEG) said Monday that it is in the final stages of acquiring a 60% interest in the Maricunga property in northern Chile, independently ranked as one of the top 10 lithium projects in the world.

The lithium company's exclusivity period for the deal has been extended to April 26, which will see Li3 purchase 60% of the project for US$6 million in cash and 30% of its shares. Li3 has also agreed to pay consideration dependent on the project achieving certain goals.

In early February, the company announced it hired Chilean-based SignumBOX to complete an evaluation report on the Maricunga project, with results indicating that the property has the potential to become "the leading lithium project based in salar brine-bearing deposits".

According to SignumBOX, Maricunga has a geophysical index that is 64% higher than average, and has the potential to improve.

The report noted: "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."

Li3 said that it has also received an NI 43-101 compliant report on Maricunga confirming the project's merits, which has outlined a $3.8  million work program for the property to support an updated resource estimate and a prefeasibility report.

"The reports on the Maricunga project validate our beliefs in the strength and merit of this acquisition," said CEO Luis Saenz.

"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."

Currently, the company is in the final stages of obtaining the land rights to 4,900 hectares in the vicinity of Salar de Maricunga, as a potential site for the processing facilities of the project.

Li3 is focused on identifying and acquiring lithium brine opportunities in Peru, Argentina and Chile and the US. The company's shares rose more than 11% on Monday to trade at $0.30 as of 10:19am EST.

]]> Tue, 12 Apr 2011 16:07:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/27308/li3-close-to-acquiring-60-of-maricunga-among-top-10-lithium-projects-globally-27308.html <![CDATA[Li3 Energy’s strong management team suggests ambitions to develop lithium and potash projects is achievable ]]> http://www.proactiveinvestors.co.uk/companies/news/26991/li3-energys-strong-management-team-suggests-ambitions-to-develop-lithium-and-potash-projects-is-achievable-26991.html Li3 Energy (OTCBB: LIEG), is an early stage, U.S. public company, with a highly competent, Peruvian based management team, that is acquiring and developing a portfolio of brine deposits located in Peru, Argentina, and Chile for development and production of Lithium, Potash and associated by products.

The company recently raised $1.5 million, and plans to list on the TSX in the first quarter of 2011. The equity offering will place 80 million shares at US$0.25 cents, raising US$20 million, which is required to acquire the Maricunga Lithium Project for $6 million, fund work commitments on the project for $5 million, acquire the Alfredo Iodine-Nitrate Project for $5 million, and provide additional cash of $4 million to cover working capital, placement and listing fees.

CIBC is advisor and sponsor to the company. On completion of the offering and listing Li3 will have issued 392.1 million shares on a fully diluted basis, after payment of vendor consideration. In addition, vendors will have the right to appoint 3 out of 7 Li3 Directors and will also have management participation in the Executive Committee.

The Alfredo and Maricunga Projects are projected to have a total capital cost of $290 million and exceed a 20 year mine life. Their consolidated Net Present Value is estimated at $465 million, creating annualized net revenues exceeding $100 million, and providing a healthy Internal Rate of Return of 31%, discounted at 10%. These estimates assume that Maricunga will secure a sale price of $5,500 per tonne of Lithium Carbonate and $300 per tonne of Potash, and Alfredo will secure $900 per tonne of Potassium Nitrate and $27,000 per tonne of Iodine.

Alfredo covers 6 concessions over an area of 2,700 hectares, and is located southeast of Iquique, near Ponzo Almonte, in an area that hosts the biggest caliche deposits in the world and the only known source of commercially exploited natural nitrates on the planet. These resources are believed to be the result of sediment depositions from an ancient sea or accumulation of minerals from the Los Andes. SQM (SSE: SQM.A) annually extracts 30 million tons of caliche and Minera ACF is also a major producer, operate caliche mines recovering both Iodine and Nitrates.

The Alfredo Potassium Nitrate-Iodine Mine has been drilled, sampled and technically evaluated for a pending NI 43-101 statement, containing an Inferred Resource of 63.5 million tonnes of caliche ore, containing 4 million tonnes of Nitrate, at a grade of 6.3% using a 4% cut-off and 12,000 tonnes of Iodine.  This estimate is based on 4,660 samples, and 438 drill holes for a total of 2,330 meters, over a grid measuring 400 meters by 400 meters to a depth of 5 meters, covering 67% of the property.

Geophysics also confirms that Alfredo contains continuous caliche beds that are capable of producing commercial quantities of both Iodine and Nitrates. The extraction technology required for this project is well established, and EPCM Engineering firms with technical expertise are readily available to complete a feasibility study and project pre-construction engineering within 18 months. On a stand alone basis Alfredo is projected to cost $117 million, have a Net Present Value of $75-100 million, and a mine life of 21 years.

The Maricunga Lithium Project covers an area of 1,438 hectares and is located in the northeast section of the Salar de Maricunga, in Atacama in northern Chile. Historical work on the Salar over an area of 8,000 hectares, calculated a Non Compliant Mineral Resource of 224,300 tonnes of Lithium and 3,274,000 tonnes of potash, and is known as the 7th largest Lithium brine resource in the world. In the 1980’s the Chilean Government calculated a Non Compliant Resource of 224,300 tonnes of Lithium, for a recovery of 600,000 tonnes of Lithium Carbonate utilizing a 50% recovery factor. On an annualized basis they estimated that the resource could produce 30,000 tonnes of Lithium Carbonate for 20 years. Utilizing a recovery factor of 70%, 2,300,000 tonnes of Potash could be recovered at a rate of 115,000 tonnes per year for 20 years, or 96% of the requirements at Alfredo, where the feedstock will be upgraded to a higher value product.

The Maricunga Lithium Project will produce a Potassium Chloride/Potash co-product that will be shipped approximately 300 miles to the Alfredo Project, where it will be upgraded to Potassium Nitrate Fertilizer. The value added process will upgrade the Lithium Carbonate Potash to 120,000 tonnes per year of Potassium Nitrate, which is currently priced at US$1,000 per tonne. This credit from the transfer of the Potash will reduce the production cost of Lithium Carbonate at Maricunga by $22 million per year, or $ 1,500 per tonne of Lithium Carbonate. The Alfredo Project will also produce 700 tonnes per year of Iodine.

Recent brine samples analyzed by the vendors from 58 wells and 226 brine samples, indicate that the Maricunga Project will have production costs lower that the nearby Salar de Hombre Muerto, and slightly higher than the Salar de Atacama. The Project is situated at an elevation of 3,760 meters above sea level, and has a net evaporation rate of 1,000 mm per year, which is lower than Atacama but similar to Rincon. The capital cost of a 30,000 tonne per year plant is estimated to be under $170 million, with cash costs of US$1.50 per kg, including the Potash by-product credit.

Li3 has signed a non-binding Letter of Intent, and paid a non-refundable deposit of $250,000, providing a 90 day exclusivity to purchase a 60% interest in Maricunga from a group of private companies that hold a 100% interest in the project. The agreement is subject to full due diligence, which is now in full swing. On closing of the acquisition Li3 will make a payment of US$6 million, and issue 78.8 million shares to the vendors. Following the Closing of the acquisition, Li3 will commit to invest US$5 million in development and technical studies, in full compliance with NI 43-101 standards, advancing Maricunga to completion of a bankable Feasibility Study.

Li3 is led by a highly motivated team with a proven track record of successful resource development experience, including Kjeld Thysen, who is currently a Director of Ivanhoe Mines (NYSE: IVN), David G. Wahl, who is a Senior Geologist and Consultant to a large array of international clients, and Anthony Hawkshaw, who is CFO of Rio Alto Mining (TSX-V: RIO).

CEO Luis Saenz, who runs operations from the Peruvian office, and has over 18 years of senior mine finance and metals trading experience with a number of well known international entities.

The immediate future of Li3 will focus on completion of the proposed funding and closing of the purchase of both Alfredo and Maricunga. The value of the business is expected to rapidly unfold as the company fast tracks development, through to funding, plant construction and commencement of mining operations, projected to commence in about eighteen months.

]]> Fri, 01 Apr 2011 19:17:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/26991/li3-energys-strong-management-team-suggests-ambitions-to-develop-lithium-and-potash-projects-is-achievable-26991.html <![CDATA[Li3 signs binding deal to acquire control of Maricunga, company to list on TSX ]]> http://www.proactiveinvestors.co.uk/companies/news/26078/li3-signs-binding-deal-to-acquire-control-of-maricunga-company-to-list-on-tsx-26078.html Li3 Energy (OTCBB:LIEG) said Tuesday it has signed a binding deal to acquire a 60% stake in a group of private companies that collectively own the Maricunga lithium project in northern Chile.

Under the terms of the transaction, lithium miner Li3 will pay US$6 million and issue 30% of its shares to the group of companies, known as Sociedades Legales de Minerales de LITIO 1 a 6 de la Sierra Hoyada de Maricunga.

Li3 will also invest up to $5 million for exploration work to advance the Maricunga project to feasibility study stage.
Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

Corfo, the economic development agency of Chile, conducted a sampling program on the 8,000 hectare Salar de Maricunga, which calculated a mineral resource of 224,300 tonnes of lithium carbonate and 3.27 million tonnes of potash.

"This [acquisition] brings us one step closer to consolidating our portfolio and becoming a value added industrial minerals producer," said Li3 CEO Luis Saenz.

Indeed, the deal is expected to create synergies with the company's Alfredo nitrate iodine project near Pozo Almonte, Chile.

Potash from Maricunga can be reacted with sodium nitrate from Alfredo in order to produce potassium nitrate, while the sulfate from Alfredo can be used as a low cost raw material for lithium processing at Maricunga, said the company.

The deal is expected to close sometime in March.

Separately, Li3 also announced today that it is preparing to list on the Toronto Stock Exchange, and has hired Gowling Lafleur Henderson as legal counsel to assist in the process.

Li3 is focused on acquiring a portfolio of lithium brine deposits, specifically in Peru, Argentina, Chile, and the US, to meet the growing demand and support clean energy initiatives.

]]> Thu, 03 Mar 2011 19:08:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/26078/li3-signs-binding-deal-to-acquire-control-of-maricunga-company-to-list-on-tsx-26078.html <![CDATA[Li3 to complete independent evaluation on Maricunga project ]]> http://www.proactiveinvestors.co.uk/companies/news/25335/li3-to-complete-independent-evaluation-on-maricunga-project-25335.html Li3 Energy (OTCBB: LIEG) said Monday it plans to complete an independent evaluation report for the Maricunga lithium project in Chile as part of its due diligence process for the property.

The company signed a letter of intent to acquire a 60% stake in the project in early December.

Today, Li3 said it has hired Chilean based SignumBOX to complete the independent analysis, which will be completed over five weeks and include a review Maricunga's geological characteristics, and a comparison between the project and others similar to it.

Other aspects that will be covered by the report include an assessment of Li3's position to develop Maricunga, and the property's potential synergies with the company's Alfredo project.

"Independent analysis is always very important at this critical stage of development, and we are confident it will demonstrate the robust nature of an asset we believe to have world-class potential and help us in taking the correct steps going forward," said CEO Luis Saenz.

The completion of the Maricunga acquisition remains subject to due diligence, financing of the purchase price, and other customary conditions.

Li3 is focused on identifying and acquiring lithium opportunities in Peru, Argentina and Chile, as well as the United States.

]]> Tue, 08 Feb 2011 10:23:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/25335/li3-to-complete-independent-evaluation-on-maricunga-project-25335.html <![CDATA[Li3 Energy receives encouraging results from sampling program at Maricunga project, Chile ]]> http://www.proactiveinvestors.co.uk/companies/news/25066/li3-energy-receives-encouraging-results-from-sampling-program-at-maricunga-project-chile-25066.html Lithium miner Li3 Energy (OTCBB:LIEG) said Friday it has completed its initial brine sampling program at the Maricunga project in northern Chile, with encouraging results.

Of 104 samples taken, partial results from 28 samples were received, with values as high as 1.4 g/l lithium and 10.3 g/l potassium. Average values from the samples grade 0.90 g/l lithium and 6.69 g/l potassium.

"These results are superior to many other comparable projects in Argentina," the company said in a statement.

In December, Li3 signed a letter of intent to acquire an interest in Maricunga through the acquisition of a 60% stake in a group of private companies that collectively own the property. In return, Li3 agreed to pay US$6 million and issue a number of shares of its common stock.

The company said it is also committed to invest a total of up to US$5 million in exploration studies and various work programs at Maricunga to advance the project towards feasibility stage.

"We believe that the final full results will verify that the Maricunga Project is indeed a world class lithium brine property," said COO Tom Currin.

Li3 is focused on identifying and acquiring lithium opportunities in Peru, Argentina and Chile and the United States. The company was up more than 9% on Friday to trade at $0.27 as of 12:00pm EST.

]]> Mon, 31 Jan 2011 09:02:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/25066/li3-energy-receives-encouraging-results-from-sampling-program-at-maricunga-project-chile-25066.html <![CDATA[Li3 Energy's acquisition of Maricunga project in Chile advancing as planned ]]> http://www.proactiveinvestors.co.uk/companies/news/24150/li3-energys-acquisition-of-maricunga-project-in-chile-advancing-as-planned-24150.html US-based Li3 Energy (OTCBB: LIEG) said Friday that its due diligence in preparation for acquiring 60% of the Maricunga lithium project in northern Chile is advancing as planned, as the company recently completed a visit to the property.

The news has sent the company's stock up more than 25% today to $0.27 as of 2:36pm EST.

Salar de Maricunga is the largest undeveloped lithium brine resource in Chile, second only to the Salar de Atacama. A sampling program on the 8,000 hectare property was conducted by CORFO, the economic development agency of Chile, and calculated a mineral resource of approximately 1.2 million metric tons of lithium carbonate equivalent and 3.27 million metric tons of potash.

In February 2007, the previous owners of Maricunga started the first campaign of exploration at the site by drilling 58 vertical wells to a depth of 20 meters on a 500 x 500 meter systematic grid.

Li3 Energy said that during the visit to Maricunga last week, it was confirmed that many of the casings of the wells from the 2007 campaign still remain intact, which the company believes will help it verify the information provided during the due diligence process.

Yesterday, Li3 began its own extensive surface sampling program and plans to begin a seismic geophysics program in January next year.

"We are very pleased with the due diligence progress and the work conducted on Maricunga to date. Our preliminary findings confirm the potential of Maricunga as a world class asset," said CEO Luis Saenz.

The company recently raised US$500,000 through a private placement, of which US$250,000 was paid as a non-refundable deposit on the Maricunga project.

Li3 is focused on identifying and acquiring lithium opportunities in Peru, Argentina and Chile.

]]> Mon, 20 Dec 2010 13:06:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/24150/li3-energys-acquisition-of-maricunga-project-in-chile-advancing-as-planned-24150.html <![CDATA[Li3 Energy to acquire control of Maricunga project in northern Chile in cash and stock deal ]]> http://www.proactiveinvestors.co.uk/companies/news/23584/li3-energy-to-acquire-control-of-maricunga-project-in-northern-chile-in-cash-and-stock-deal-23584.html US lithium mining company Li3 Energy (OTCBB: LIEG) said Wednesday it has signed a letter of intent to acquire a 51% stake in a group of private companies that collectively own the Maricunga project in northern Chile, in a cash and stock deal.

Under the terms of the transaction, Li3 will pay US$5.1 million and issue 26% of its shares to the group of companies, known as Sociedades Legales de Minerales de LITIO 1 a 6 de la Sierra Hoyada de Maricunga.

Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

Corfo, the economic development agency of Chile, conducted a sampling program on the 8,000 hectare Salar de Maricunga, which calculated a mineral resource of 224,300 tonnes of lithium carbonate and 3.27 million tonnes of potash.

"The Maricunga Project acquisition is a major transaction on a property that has had advanced work performed in the past in a district that has historically proven to be as attractive as the Atacama producing region," said Li3 CEO Luis Saenz.

The deal will also benefit Li3 as it is expected to create synergies with the company's Alfredo nitrate iodine project near Pozo Almonte, Chile.

Potash from Maricunga can be reacted with sodium nitrate from Alfredo in order to produce potassium nitrate, while the sulfate from Alfredo can be used as a low cost raw material for lithium processing at Maricunga, said the company.

Li3 added that it would invest a total of up to US$5 million in exploration and studies to advance the project towards feasibility stage.

The deal remains subject to due diligence, financing and other customary conditions.

Li3 is focused on acquiring lithium opportunities in Peru, Argentina and Chile to support clean energy and green energy initiatives.  The company was down more than 17% on Wednesday, trading at $0.27 as of 12:15pm EST.

]]> Thu, 02 Dec 2010 09:49:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/23584/li3-energy-to-acquire-control-of-maricunga-project-in-northern-chile-in-cash-and-stock-deal-23584.html <![CDATA[Latest Assay Results Show Potential for Economic Grade Brine Lithium for Li3 Energy ]]> http://www.proactiveinvestors.co.uk/companies/news/18629/latest-assay-results-show-potential-for-economic-grade-brine-lithium-for-li3-energy-18629.html Li3 Energy Inc. (OTC: LIEG) has today released the assay results from the first batch of brine samples collected on its Pocitos and Rincon Salar prospects in Argentina. These results indicated potential economic near surface brine assays ranging from 300 parts per million (ppm) to 600ppm lithium. The potential for this higher grade discovery is highly significant, as although lithium is found in many igneous rocks and some brines, it is generally not found in high enough sizes or grades to be of commercial interest. These assay results therefore show positive potential at both the Pocitos and Rincon Salar prospects.

Luis Saenz, CEO of Li3, commented “The first batch of brine geochemical assays are very encouraging, reporting brine concentrations similar to the concentrations reported by Sentient for their Rincon Limited Project on the Rincon Salar and for Hombre Muerto Salar, which hosts the currently producing FMC Fenix Lithium Mine”.

To give a little background, Li3 Energy is a growing, well managed lithium exploration company focused on the acquisition and development of highly prospective lithium brine properties in the Americas. As mentioned, lithium can be found in both hard rocks, where traditional mining methods are required for extraction, and in brines (dissolved in water), where evaporation based extraction methods are used. Lithium brine therefore is much more economical for commercial purposes, having cheaper costs, lower energy requirements, quicker extraction and less environmental by-products than mining lithium. The potential to use solar evaporation to extract the lithium (as the name suggests, using the heat of the sun in the process of extracting lithium from water), as Li3 have in this case, reduces energy requirements and costs even further.

Looking at this set of assay results, prospects for both the Pocitos and Rincon Salars  are promising. The Pocitos Property covers approximately 8,643 hectares, occupying the central portion of the Pocitos Salar.  Brine sampling sites were established at 500 meter intervals on grid lines spaced at 1,000 meter intervals. A total of 46 samples was collected during the initial phase of the Pocitos program. The Rincon Salar Property comprises two parcels, North and South, covering a total area of 7,461 hectares. Both parcels are located in the northern part of the Salar and share the Salar with property owned by The Sentient Group’s Rincon Lithium, which is commencing the design-build phase of a pilot plant on the property. Brine sampling sites on the Rincon Salar North and South parcels were established at 500 meter intervals on grid lines spaced at 1,000 meter intervals.  A total of 63 samples was collected during the initial phase of the Rincon program.

The assay results show two northerly trending zones of lithium and potassium concentrations on the Pocitos Salar Property, referred to as the East Anomaly and the West Anomaly. The East Anomaly shows lithium concentrations ranging from 100ppm to 300ppm and has potassium concentration ranging from 1,000ppm to 7,000ppm. These sample results suggest the anomaly is approximately 6 kilometres long and 2 kilometres wide (although the full extent of this anomaly is unknown and could be larger). The West Anomaly shows lithium concentrations ranging from 100ppm to 200ppm and has potassium concentration ranging from 1,000ppm to 5,000ppm. This anomaly is up to 6 kilometres long and 2 kilometres wide (as with the East Anomaly, the full extent of the West Anomaly is unknown and could be larger).

Assays from the Rincon Salar South Parcel show very significant lithium brine concentrations, ranging from 300ppm to 600ppm, with potassium concentrations ranging from 5,000ppm to 10,000ppm. Assays from the North Parcel show relatively low brine concentrations of lithium, ranging from 10ppm to 100ppm, with potassium ranging from 1,000ppm to 2,500ppm. Li3 noted the North Parcel will be challenging to explore, because it covers a portion of a large delta, and as a result much of the area is covered with sediment.  This is in sharp contrast with the Southern Parcel, which has little or no surface challenges. The company also suggested that the low concentrations at the North Parcel are a direct result of the dilutive effect of the intermittent surface run-off (the dilution of concentrations due to the excess water from the aforementioned river delta) and may not be a true reflection of mineral concentrations of the aquifers at depth. A measure of this dilutive effect can effectively be seen by comparing these assays with those reported from the South Parcel, which is located only 5 kilometres to the southeast.

Going forward, Li3 intends to have preliminary economic assessments of its properties by the end of this year, with feasibility studies at some point in the first half of 2011. These latest assay results, showing the potential for economically viable lithium brine, act as a first step indication of the potential value to Li3 of its Pocitos and Rincon Salar prospects.

]]> Thu, 08 Jul 2010 11:46:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/18629/latest-assay-results-show-potential-for-economic-grade-brine-lithium-for-li3-energy-18629.html