Li3 Energy Provides POSCO Update
LIMA, Peru, July 5, 2011 /PRNewswire/ — Li3 Energy, Inc., (“OTCBB: LIEG” – News) (“Li3″, “Li3 Energy” or the “Company”), a US-listed and Peruvian-based global exploration company in the lithium and minerals sector is pleased to announce that it has mutually agreed to extend the expiration date and continue negotiating terms of a formal agreement with POSCO, (NYSE: PKX), a leading industrial company headquartered in the Republic of South Korea. The MOU originally set to expire on June 30th, 2011 has been extended until August 31st, 2011. POSCO is a diversified company, with operations in energy, chemicals and materials. POSCO is one of the largest steel manufacturers in the world with $56 billion in annual revenues, invests in numerous global resource development projects and has been actively evaluating and pursuing leading lithium projects globally.
Luis Saenz, CEO of Li3 Energy, stated: “After concluding a week in Korea with POSCO’s senior management team, advisors and legal counsel, I am extremely pleased that both companies have expressed a desire to continue working towards a mutually beneficial transaction. Our objective is to align the companies in a manner that provides Li3 with capital while minimizing dilution and still providing POSCO with a range of possible involvements including both financial and technological exchanges. Li3 is very proud to be considered as a potential strategic partner in lithium and other minerals and we look forward to exploring financial, technical and commercial opportunities with a global strategic partner of this magnitude”.
As Li3 has reported, the independent evaluation recently conducted by SignumBOX concluded that the Maricunga lithium project in its currents state is among the top eleven lithium projects in the world and has the potential to become the leading lithium based salar in brine-bearing deposits. Among other items, including securing additional financing and receiving the necessary Chilean government and environmental approvals, this report concluded that securing a multinational strategic off-take partner was one of the missing elements that could elevate the project even further.
POSCO engages in the manufacture and sale of various steel products in South Korea and internationally. It offers steel for general structures and welded structures used in steel structures, bridges, ships and automobiles; atmospheric corrosion resistant steel for use in the production of containers, special vehicles and buildings, hot rolled steel used in automobile frames and wheels; and hot rolled steel for special applications. The company also provides cold rolled sheets used in cold-rolled products, such as CR, GU and color plates; steel for structural pipes, general pipes, special pipes, and carbon steel pipes for machines; steel used in high-pressure gas containers; steel for oil well pipes; and steel for pipelines. The company was founded in 1968 and is based in Seoul, South Korea.
About Li3 Energy, Inc.
Li3 Energy, Inc. is a developmental stage public company in the lithium mining and energy sector focused on the identification and acquisition of properties in Peru, Argentina and Chile and the United States. Li3 Energy aims to acquire a significant portfolio of lithium brine deposits in the Americas for the purpose of development and production in order to meet growing market demand and to support the clean energy and green energy initiatives being implemented globally. Additional information regarding the company can be found in our recent current filings (Forms 8k, 10Q and 10K) with the SEC as well as the information maintained on our website www.li3energy.com).
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 the 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 Exchange Commission on November 5, 2010. The Company disclaims any obligations or undertaking 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.
Li3 Energy, Inc.
Luis Saenz, CEO
Av. Pardo y Aliaga 699 Of. 802,
San Isidro, Lima 27, Peru
The InVentures Group Inc.
Marc S. Lubow,
(904) 645 – 9549
SOURCE Li3 Energy Inc.