Jan 28 2011
Li3 Energy, Inc. (OTC Bulletin Board: LIEG) has completed its initial brine sampling program at the Maricunga Project in northern Chile.
Out of 104 samples that have been taken, partial results from 28 samples have been received, with values of up to 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 remainder of the results are expected soon.
Tom Currin, Chief Operating Officer of Li3 Energy, stated: "These partial results tend to confirm the results of the 2007 shallow well sampling program and the historical sampling work performed by CORFO (the Chilean Economic Development Agency). We believe that the final full results will verify that the Maricunga Project is indeed a world class lithium brine property."
In December 2010, Li3 Energy signed a non-binding exclusive letter of intent with a group of private companies to acquire 60% ownership of the companies, which collectively own the Maricunga Project. Li3 Energy will pay US$6 million and issue a number of shares of Li3 common stock to the companies equal to 30% of the outstanding Li3 stock on a post-transaction basis. 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. 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.
Closing of the Maricunga acquisition is subject to satisfactory completion of due diligence, financing of the cash purchase price and work commitment by Li3, and other customary conditions. The letter of intent will expire on February 28, 2011, if the acquisition has not been completed, unless the parties agree to an extension.
Source: Li3 Energy, Inc.