Apr 8 2015
Li3 Energy, Inc.,, a US-listed and South America based global exploration company in the lithium and minerals sector which holds an interest in the Maricunga lithium project in Northern Chile, announced today the commencement of the next phase of exploration and development work on its flagship Maricunga Project in northern Chile. Work began in February with pumping tests and geophysical work, as well as other work to further progress towards the production phase.
Additionally, Li3 announces several other initiatives:
- After careful review by the Board of Directors, the decision was taken to continue the quotation of the Company's common stock on the OTCQB Marketplace to provide shareholders with the most appropriate measure of our commitment and transparency.
- The Company has reduced a significant amount of its liabilities, including approximately $800,000 in penalties, fees, and interest relating to Registration Statement penalties. The Company successfully reached a settlement with the investors that were entitled to this penalty and fees at a significant discount, in exchange for shares in Li3, thus also preserving its cash resources. This is a significant milestone for the Company in its efforts to improve its balance sheet.
- The Board of Directors approved a wide range of additional cost cutting initiatives designed to continue to reduce costs and preserve cash, which the Company believes will further enable the advancement of the Maricunga project. The cost reductions included administrative and operational expenses, streamlining various Board committees, salary reductions for senior management and the reduction of liabilities resulting in the termination of key employees. Through this cash saving exercise, Li3's management and Board remains committed to Li3 and advancing its projects.
- Li3 continues to evaluate various strategic options and financing alternatives to further strengthen its position during these challenging market conditions.
Luis Saenz, CEO of Li3 commented, "Whereas many other companies have been forced to shut down given the difficult market conditions, Li3 continues to move forward in conjunction with the positive signs coming from the Chilean government, as stated in our January 28, 2015 press release, and the lithium markets as a whole."
"We believe the work being done on the Maricunga Project and the settlement of the liabilities is a significant step that will make a considerable difference as we look at strategic opportunities, and that the drastic reduction in costs will ensure the long - term viability of the Company given its limited cash and uncertain equity markets," commented Patrick Cussen, Chairman of Li3.
Source: http://www.li3energy.com/