Li3 Energy Inc., Santiago, which is tasked to develop the Maricunga lithium brine project in Chile, has added more reserves and named a chairman of the board. One of Li3’s goals is to become a mid-tier, low-cost supplier of lithium, potassium nitrate, iodine, and other strategic minerals, serving global clients in the energy, fertilizer and specialty chemical industries.
In December, Li3, a U.S.-listed and South American-based company, signed a Letter of Intent (LOI) to acquire 100 percent of the interests of SLM Bongo, SLM Clarita, SLM Lithium, and SLM Corral. Collectively, these projects comprise 74 mining concessions covering a total of 9,257 hectares. The SLM Clarita, SLM Bongo, and SLM Lithium projects (1,507 hectares/43 concessions) are classified as exploration concessions. They are situated within the Maricunga Salar in Northern Chile (Region 111), within close proximity to existing Li3 mining concessions, bringing the total hectares owned within Maricunga to 2,945. The SLM Corral (7,750 hectares/31 concessions) is located approximately four (4) kilometers north of Li3’s Maricunga Project Base Camp and could possibly serve as the site for its commercial processing facility, as well as its evaporation ponds. Upon successful closing, the properties would increase Li3’s existing Maricunga and other land ownership to 10,695 hectares, making Li3 Energy one of the largest exploration and land owners, and to the best of its knowledge one of the only companies conducting development work within Maricunga.
Li3 says the properties represent some of the largest possible land packages available in close proximity to the Maricunga Salar and are representative of Li3’s overall strategy to identify, acquire, explore, and develop additional accretive land assets that have by-product and other synergistic values to support the development of its flagship Maricunga Project. Upon the successful closing, Li3 believes that the known geology of Maricunga, the fragmented nature and limited number of available explorable projects within close proximity to the Salar, and the growing interest from other groups evaluating properties provides Li3 a competitive barrier, thereby neutralizing the ability of other entities to acquire large land assets and encroach upon Li3’s Maricunga Project. Li3 says it continues to evaluate additional synergistic opportunities in the region. The closing of the acquisition is subject to further due diligence, which Li3 is anticipating to be completed within 60 days.
The financial terms of the combined acquisitions consist of the following: On execution of the LOI, US$250,000.00; on closing of the acquisition (for 100 percent of the properties), US$1.5 million; on completion of a NI 43-101 on the properties, to be completed on or before July 1st, 2012, US$3.0 million and 20 million shares of restricted Li3 common stock; on Jan. 1, 2014, US$5.0 million, or at the sole option of Li3, the equivalent of restricted Li3 common stock, as well as 25 million shares of restricted Li3 common stock. The SLM Corrales property will be acquired for a price equivalent to all of the expenses that have been incurred since its constitution (approximately US$100,000) up to the closing of the acquisitions, with 100 percent of the asset transferred on closing.
Li3 recently named mining veteran Patrick Cussen as chairman of the board. The company says he has over 35 years of experience in the industry, specifically in marketing and sales, project exploration, evaluation, and technical and economic assessment. He is currently the president of Celta, a Chilean mining services company, and also chairman of the board of The Center for Copper and Mining Studies, (Cesco), the Chilean think-tank on mining.