Li3 Energy, Inc. (OTCBB: LIEG) is a United States listed global exploration and development company, serving to meet the growing global market demand for clean, green energy initiatives. Li3’s strategy is to become a mid-tier supplier that seeks to acquire and develop additional properties and ultimately produce lithium, potassium nitrate, iodine, boron and other strategic minerals in order to serve global clients supporting the energy, fertilizer, agriculture and specialty chemical industries.
Li3 Holds a 60% Interest in the Maricunga Lithium Brine Project
- Salar de Maricunga is considered the 7th largest lithium brine resource in the world (Industrial Minerals Lithium Conference, January 2010)
- Li3′s Maricunga Project owns prospective mineral claims that cover a total area of 3,553 acres (1,458 hectares) in Chile
- Additionally, the Company owns and 19,500 acres (7,891 hectares) in Peru
POSCO Strategic Partnership for Maricunga Property
The initial $8 million POSCO funding advances the development of the Maricunga Project and should enable Li3 to achieve “Measured and Indicated Resource NI 43-101 Resource Evaluation” status. POSCO also provides crucial technical resources as well as a potential Off-Take Partner for the strategic minerals commercially extractable from the project. A second $10MM tranche of funding is committed from POSCO upon achieving certain milestones. This strategic partnership has the potential to significantly enhance shareholder value.
Li3 plans to become a low-cost provider of lithium and other minerals attributable to the potential (signumBOX June 2011 Report) to become number ONE Lithium underdeveloped project in the world, expected lowest cost of production versus other Chilean salars (signumBOX June 2011 Report), and the patented R3 SPaCeR™ technology exclusive to Li3.
- Li3 Owns a 60% Stake in Maricunga Project
- R3 Fusion SPaCeR™ proprietary patented technology is exclusive to Li3 with the potential to significantly reduce processing times and reduce expenditures required for production
- Securities Purchase Agreement with POSCO Canada Ltd. – Initial $8 Million funding initiates Maricunga Phase One of the $18 Million Exploration and Development Plan
Maricunga Project Highlights
- Salar de Maricunga is considered the 7th largest lithium brine resource in the world (Industrial Minerals Lithium Conference, January 2010)
- Potential to become #1 Lithium underdeveloped project
- Lowest cost of production is expected versus other Chilean salars
- Infrastructure (road & power) in place to support preliminary development with four established paved routes
- Maricunga CORFO initial resource estimate of 224K+ tonnes of Lithium; 3M+tonnes of Potash
- 2011 Li3 due diligence confirms exploration results obtained by SLM Litio (2007) and CORFO (1980’s)
- Second highest quality deposit of lithium in Chile; top 11 worldwide Lithium Project signumBOX June 2011 Report
- World class mining region, close to strategic mining epicenters, including: Copiapo, El Salvador, the Caldera Port, the Caldera International Airport and Chaneral Mining Port
Maricunga Estimated Project Timelines
- Test Facility Permits, Drilling Program, Seismic Survey and Modeling – 4th Quarter 2011
- Core Sample Drilling , Well Drilling, Pumping Test Program – 4th Quarter 2011
- Laboratory Process Simulation, Salar Test Facility, R3 Fusion Laboratory Testing – 1st Quarter 2012
- Environmental Impact Study (EIS) – 4th Quarter 2012
- Measured and Indicated NI 43 -101 Resource Evaluation – 1st Quarter 2012
Maricunga NI 43-101 Report Conclusions (Hains Technology Associates, May 27, 2011)
The Report considers the Maricunga project a “Property of Merit” holding exploration potential to warrant expenditures to advance the project to the prefeasibility stage.
- Significant potential for development as a source of lithium, potassium and boron
- Exploration work indicates that brines in the property are enriched in lithium and potassium and that the brine has a Mg/Li ratio permitting lithium recovery
- Possible to develop a NI 43-101 compliant resource approximately equivalent to the historical estimate
- Relatively high boron concentration in the brine should permit high extraction rates for recovery as boric acid, a valuable co-product
- Sulphate in the brine unusually low for a Chilean salar, reducing need for additional reagents for sulphate removal
Li3 Energy plans to leverage synergies in other potential mineral projects where potassium chloride production is planned to be used in the production of potassium nitrate. The by-product sodium sulphate from these potential projects will be returned to Maricunga to adjust the sulphate balance for calcium removal.
Lithium Demand – May be driven by increased use in batteries of portable consumer electronics and a wide range of industrial applications. Li3 believes as production of hybrid vehicles increases and transitions to pure electric vehicles over the next decade, global requirements for lithium used in the production of batteries may increase substantially. Recently, some fortune 500 companies, including global battery and auto makers have partnered with lithium exploration companies to secure a consistent, reliable source of lithium.
Li3 Strategic Partners
POSCO (NYSE: PKX)
Li3 has entered into a Securities Purchase Agreement with POSCO Canada Ltd. (“POSCAN”), a wholly-owned subsidiary of POSCO, (NYSE: PKX), a Republic of South Korea multinational global leader. POSCO, with over $60 billion in revenue, is one of the largest steel manufacturers in the world and has global operations in energy, chemicals and materials. POSCO has been actively evaluating, pursuing and partnering on leading lithium projects globally.
The POSCO securities purchase agreement brings both financial and technical support with potential commercial opportunities.
- An initial investment to purchase $8MM of Units (each Unit consists of one share of common stock and a three-year warrant to purchase one share of common stock at an exercise price of $0.40) at a price of $0.21 per Unit
- A follow-on investment of $10MM of additional Units at $0.21 per Unit upon satisfaction of certain conditions, including:
- (i) an NI 43-101 report concluding that proceeding to the Feasibility Study phase for the Maricunga project is warranted
- (ii) completion of Li3’s proposed work program and
- (iii) having the necessary permits and approvals in place for building and operating a brine test facility on the Maricunga property
- The common shares purchased by POSCAN, shall be locked up and may not be sold until the earlier of:
- (i) 9 months after their issuance date or
- (ii) November 20, 2012
- Board representation – Li3 shall appoint a director nominated by POSCAN to its Board of Directors and shall continue to nominate a POSCAN, designee at each annual meeting for as long as POSCAN, owns not less than 10% of the issued and outstanding shares of Li3
R3Fusion – Li3 Executed Exploratory MOU
The R3 Fusion SPaCeR™ technology could be extremely valuable as it relates to reducing processing times, allowing for the collection of clean distilled water, and potentially reducing the capital expenditures required. Achieving these benefits would improve the overall financial economics as well enhance the reduction of time to commercial production
- R3′s Technology is both proprietary and patented with the potential to significantly reduce production costs
- R3 Fusion Laboratory Testing first evaluation anticipated completion: 1st Quarter 2012
- R3 has begun exclusively evaluating a patented technology from R3 Fusion, Inc. This technology is designed to separate and recover pure water from highly concentrated brine solutions using process intensification techniques
- R3 will attempt to demonstrate and Li3 will measure the efficacy of R3’s SPaCeR ™ technology for the concentration of lithium chloride solutions
- R3 and Li3 will seek to identify an appropriate commercial agreement to deploy the technology exclusively for lithium brine processing within six months of completion of a successful demonstration program
- If successful, R3 will design and construct systems appropriate for the volumes and economics associated with Li3’s requirements
Peru Projects
Li3 Energy, Inc. has acquired 100% of the Loriscota, Suches, and Vizcachas Projects (the “Projects”) respectively located in the Departments of Puno, Tacna and Moquegua, Peru. The projects are prospective of lithium and potassium deposits and are comprised of nine claims that cover a total area of 7,900 hectares (approximately 19,500 acres) at an elevation of 4,300 meters (approximately 14,000 feet) above sea level.
The claims are not covered by any restrictions on mining, as they are located in areas designated open to exploration and mining according to Peruvian Ministry of Energy and Mines information. The Projects have undergone preliminary sampling and have been found to contain similar values to regional deposits in other more advanced South American operations that are currently under development for commercial production. The mineralization is similar to salt deposits in evaporitic lakes that are recognized producers of lithium.
Li3 is focused on commercializing these assets, acquiring additional properties and exploring the use of disruptive evaporative technologies that may improve the economics and timelines of its assets.
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Management and Board of Directors
Li3 brings over 125 years of combined experience in exploration, mining, minerals, start-up, finance and business development to bear in managing the company. The complementing strengths and balance of its Management Team coupled with that of its contracted advisors and consultants will ensure that from start to finish, the attention to detail from exploration, governmental affairs and regulations, business development, marketing, strategic partnerships and off-take agreements will result in timely decisions and execution.
Management
Luis A. Saenz, CEO, Director
Mr. Saenz currently serves as our CEO and has been in this capacity since he joined the Li3 in October 2009. He has also served as a director on our Board of Directors since October 19, 2009. Mr. Saenz has over 18 years of experience in the mining industry. He is currently, and has been since July 21, 2008, the CEO and President and a Director of the publicly traded Loreto Resources Corporation (LRTC.OB). Mr. Saenz was formerly employed at Standard Bank (“Standard”) with Standard’s investment banking unit, Standard Amer-icas, Inc. Mr. Saenz joined Standard in New York in 1997 and relocated to Peru in 1998 to establish Standard’s Peru representative office. While in Peru, Mr. Saenz led Standard’s mining and metals organization effort in the Latin America region. Mr. Saenz returned to New York in 2007 to head Standard’s mining and metals team in the Americas. Mr. Saenz previously worked for Pechiney World Trade in the base metals trading area before joining Merrill Lynch as Vice-President for Commodities in Latin America. Mr. Saenz also serves on the Board of Directors of Coronet Metals, a Vancouver based and Toronto listed advanced stage golg and silver exploration and mining company. Mr. Saenz graduated from Franklin and Marshall College in 1991 with a Bachelor of Arts degree in economics and international affairs.
E. Thomas Currin, Jr., COO
Mr. Currin, Jr., has been our interim Chief Operating Officer since August 11, 2010. Mr. Currin is the founder and President, since 1993, of Limtech Technologies, Inc., a privately held company providing engi-neering services, lithium chemical products and recycling services to the lithium chemical industry. From June 2004 to June 2009, Mr. Currin served as Chairman of Limtech Carbonate, Inc., a privately held Canadian company which declared bank-ruptcy in June 2009 and was liquidated in August 2009. From 1981 to 1993, Mr. Cur-rin served in various capacities with FMC, Inc., a diversified chemicals, mining and machinery company, including as Division Planning Coordinator for FMC’s Lithium Division. Prior to FMC, Mr. Currin was Production and Process Engineer from 1978 to 1981 of Reynolds Metals Company, an international mining and chemical compa-ny. Mr. Currin earned a Bachelor of Science degree in Chemical Engineering from North Carolina State University in 1978. Mr. Currin holds or has held memberships in the Combustible Metals Committee of the National Fire Protection Association, in the Metals Section Executive Committee of the National Safety Council and in the Ameri-can Institute of Chemical Engineers.
Eric Marin, Chief Financial Officer
Mr. Marin has been our interim Chief Financial Officer since January 13, 2010. Since March of 2009, Mr. Marin has been the interim chief financial officer of Loreto Resources Corporation. Mr. Marin has worked in the Management and Information Technology Consulting business for almost 20 years. Mr. Marin is the President and CEO of Marin Management Ser-vices, a privately-held consultancy firm offering management, financial, and infor-mation technology consulting services to companies. From April 2006 to April 2009, Mr. Marin was a vice president of Quorum Business Solutions where he was respon-sible for building and managing client relations and overseeing operational budget, strategic planning, business development and organizational leadership services for various Fortune 500 companies. Prior to that, from December 2003 through March 2006, Mr. Marin was the president and founder of Marin Medical Services LLC, a company providing front and back-office services to the healthcare industry. From April 1996 to November 2003, Mr. Marin was a partner with Accenture Ltd. where Mr. Marin was responsible for providing management and IT consulting services to For-tune 100 companies. From February 1994 to April 1996, Mr. Marin was project man-ager of Insource Management Group, where he managed IT consulting services for a number of companies. Mr. Marin received a Masters of Business Administration de-gree from the University of Houston in 1992, and a Bachelor of Science degree in Computer Science from Texas A&M University in 1986.
Board of Directors
Board of Directors is comprised of leading global thought leaders who have founded, operated and led numerous mining and mining related businesses.
Luis A. Saenz, CEO and Director
[See biography above.]
Anthony Hawkshaw – Director
Mr. Hawkshaw was appointed to our Board of Directors on December 10, 2009. Mr. Hawkshaw is the current CFO and a director of Rio Alto Mining Limited (TSX.V: RIO), and has been a director of States-man Resources Ltd (TSX.V: SRR) since 2006. Mr. Hawkshaw has over 25 years ex-perience in the mining industry, and has extensive experience in the marketing of metals in refined and concentrate form and in metals trading. He has arranged debt, equity and convertible debt financings with institutional investors, commercial banks and multilateral lending agencies. From 2005 to 2007, Mr. Hawkshaw was the CFO of Grove Energy Limited, a London and Toronto listed oil and gas Development Company. In 2004, Mr. Hawkshaw was the CFO of Chariot Resources Limited for a period of 12 months. Prior to Chariot, Mr. Hawkshaw was CFO of Pan American Sil-ver Corp from 1995 to 2003. Mr. Hawkshaw is a Chartered Accountant and holds a Bachelor Degree in Business Management from the Ryerson University in Toronto.
Kjeld Thygesen – Director
Mr. Thygesen was appointed to our Board of Directors on December 10, 2009. Mr. Thygesen has been a director of Ivanhoe Mines, Ltd. (TSX: IVN – News) since 2001 to 2011, and has over 30 years experience as a resource analyst and fund manager within the mining industry. Mr. Thygesen co-founded Lion Resource Management, a specialist investment manager in the mining and natural resources sector, in May 1989 and is currently a Managing Director. In 1979, Mr. Thygesen joined N.M. Rothschild & Sons Limited as manager of its Com-modities and Natural Resources Department with overall responsibility for strategy and management of commodity trusts and precious metal funds. Mr. Thygesen became an executive director of N.M. Rothschild Asset Management Limited in 1984 and N.M. Rothschild International Asset Management Limited from 1987 until May 1989. Mr. Thygesen previously worked for James Capel & Co. as part of that company’s highly rated research team. Mr. Thygesen is a graduate of the University of Natal in South Africa and a member of the Institute of Corporate Direc-tors.
David G. Wahl, – Director
Mr. Wahl was appointed to our Board of Direc-tors on February 18, 2010. From 2005 to the present, Mr. Wahl has been the Presi-dent and CEO of Southampton Associates – Consulting Engineers & Geoscientist, a private consulting concern specializing in mining and technical issues for corporate clients, financial institutions and governments. From May 2002 to the present, Mr. Wahl has served as a member of the Board of Directors of Temex Resources Corp. (TSX.V: TME, Frankfurt: TQ1), a precious metals and minerals company. From July 2006 to the present, Mr. Wahl has served as a member of the Board of Directors of Dumont Nickel, Inc., (TSX.V: DNI, Frankfurt: DG7), a holding company for mining properties in certain Canadian provinces. From August, 2006 to the present, Mr. Wahl has served as a member of the Board of Directors of Latin American Minerals Inc. (TSX.V: LAT), a mineral exploration company. Mr. Wahl also has served in a technical advisory capacity to certain financial institutions, government agencies, and national legal and accounting firms. Mr. Wahl is a graduate of the Colorado School of Mines and received a degree as an Engineer of Mines in 1968.
David Rector, – Director
Mr. Rector joined our board of directors on June 6, 2008. Mr. Rector has served as our President, Treasurer and Secretary since June 6, 2008, and he also served as our Chief Executive Officer from June 6, 2008 until October 19, 2009 and as our Chief Financial Officer from June 6, 2008 until January 13, 2010. Mr. Rector served as the Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer, and Director of Nevada Gold Holdings, Inc. (formerly known as Nano Holdings International, Inc.) from April 19, 2004 through December 31, 2008. He has served as the Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer, and Director of Standard Drilling, Inc. since November 2007, and of Universal Gold Mining Corp. (f/k/a Federal Sports & Enter-tainment, Inc.) since September 30, 2008. Mr. Rector previously served as President, Chief Executive Officer and Chief Operating Officer of Nanoscience from June 2004 to December 2006, when he resigned as an officer and Director of Nanoscience. Mr. Rector also served as President, Chief Executive Officer, Chief Financial Officer and Treasurer of California Gold Corp. (f/k/a US Uranium, Inc.) from June 15, 2007 to July 11, 2007 and again from August 8, 2007 to November 12, 2007. Since June 1985, Mr. Rector has been the principal of the David Stephen Group, which provides enterprise consulting services to emerging and developing companies in a variety of industries. From January 1995 until June 1995, Mr. Rector served as the General Manager of the Consumer Products Division of Bemis-Jason Corporation. Mr. Rector was employed by Sunset Designs Inc., a manufacturer and marketer of consumer product craft kits from June 1980 until June 1985. From June 1983 until June 1985, Mr. Rector served as President and General Manager of Sunset, from August 1981 until May 1985, Mr. Rector served as an Administrative and International Director of Sunset, and from June 1980 until August 1981, Mr. Rector served as Group Product Manager for Sunset. Mr. Rector currently serves, or has served during the last five years, on the Board of Directors of each of the following public companies for the respective tenures: Senesco Technologies (AMEX:SNT), February 2002 – Present, Dallas Gold and Silver (AMEX: DSG), May 2003 – Present, Nevada Gold Holdings, Inc (NASDAQ OTC BB NGHI), April 2004 – Present, US Uranium, Inc., NASDAQ OTC BB USUI), June 2007 – Present, California Gold Corp., (NASDAQ OTC BB CLGL), June 2007 – Present, Mr. Rector obtained his Bachelor’s Degree in Business Administration from Murray State University in 1969.
Additional Information can be found and viewed at: www.li3energy.com.
Contact:
Li3 Energy, Inc.
Av. Pardo y Aliaga 699 Of. 802
Lima 27 – Perú
P: (+51-1) 212-1880
Marchant Pereira
150 Oficina 803
Providencia, Santiago – Chile
Investor Relations
Marc S. Lubow
The InVentures Group
info@li3energy.com
P: (904) 645-9549
Website: http://www.li3energy.com
Phone: (51) 1-212-1880
Email: info@li3energy.com
Forward-Looking Statements
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 results of initial exploration, and the determination by Li3 and POSCO whether to pursue any of the transactions contemplated by them; the results of research and development and the determination by Li3 and R3 whether to pursue any of the transactions contemplated by their MOU; the Company’s ability to raise additional capital to complete exploration, development and commercialization of the Maricunga Project; the future findings and economic assessment reports; the Company’s ability to obtain the necessary Chilean Government operating permit and environmental approval; 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 Ex- change Commission on November 5, 2010. The Company disclaims any obligations or under- taking 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.
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