LI3 Energy Inc (fka LIEG)

[Dr_Vonschellan]

Sitting, Holding, Waiting, Wishing.... about time to get

Bearing is down 2% today. We LIEG are happily up 16%. LPI is down AU$.02 to a disappointing AU$.335 and all the shareholders down under are ready to commit suicide. The Roadshow in Toronto and New York/Boston was a complete bust and our whole rah-rah show went over like a lead balloon. Chile’s mining minister Aurora Williams (under President Michelle Bachelet) speaking at PDAC 2017 in Toronto (near the LPI booth) offered zilch encouragement to lithium miners in Chile.
http://www.mining.com/chile-steps-up-efforts-to-lure-mining-investors-beyond-copper-sector/
For the video of token female do-nothing minister of something-something in Chile Aurora Williams babbling on with canned platitudes about nothing of any importance click here

We LIEG shareholders have not received any notice to vote on the approval (or rejection) of a merger with Bearing Resources which was supposed to ideally happen in the Spring of 2017. Such a notice would in theory precede the vote by 60 days so it is safe to say the marriage with them ain’t happening this Spring. My bet is this marriage at the most optimistic date ain’t happening until November if it even happens.
Bearing Resources http://bearingresources.nimbol.com/stock-information
published a 29-page Corporate Presentation a few days ago in PDF http://bearingresources.nimbol.com/LiteratureRetrieve.aspx?ID=236726
which sheepishly borrows heavily on content from LPI’s Investor Roadshow PowerPoint presentation published earlier http://www.lithiumpowerinternational.com/wp-content/sharelink/20170301-pdac--nyc-investor-roadshow-f16db6feff1438758b04080babd4975f.pdf

In looking at this new Bearing Resources “term paper” I am torn between doing a polite rubber-stamping “Oh that’s nice honey” review and a full-blown Tosh.O type web redemption. I think I will go for the Tosh.O web redemption otherwise I wouldn’t be able to sleep at night.
Page 01 boilerplate. No Comment
Page 02 boilerplate. No Comment
Page 03 ground rules. See LPI page 09. On page 09 Bearing pays homage to Posco and tells you Posco is a major player in this deal who is capable of being our onsite lithium concentrator at the minimum on MSB’s land that is “grandfathered” in for mining. One page 03 LPI does not even mention Posco and leads me to wonder if LPI does not “truly appreciate” having Posco in this deal. Posco has the power to bust this whole deal wide open. And don't forget that my dear amigos.
Page 04 maps (BRGRF) and charts (LPI). Blah blah.
Page 05 charts (BRGRF) and pictures of all white LPI board.
Page 06 pretty visual on where lithium demand will be in 2020.
Page 07 more pretty visuals.
Page 08 market comparables. We’ve seen this study before but what is significant is that on page 08 of the LPI version they tell us (wink wink) our Maricunga project is 78% bigger than we previously thought (574,000mt LCE) which means the new projection of 1,300,000mt LCE is probably the new figure to come in the upcoming highly anticipated JORC. Some will argue this 78% figure is the growth size in hectares of the project but I think it is also coincidentally the size increase in the LCE reservoir underground. It would be nice if “helpful” Jeremy would now tell us if we have a 20-year or a 30-year project in Chile, but no he doesn’t mention that one small critical key salient fact today that we shareholders are all dying to know ASAP.
Page 09 salar comparison. See page 16 in the LPI report. No comment.
Page 10 timeline. This is where we (LIEG) start to see the “tension” between BRGRF and LPI. BRGRF’s Page 10 compares to page 12 in the LPI study. Note how BRGRF has superimposed the two part $22,000,000 contribution IN BOLD PRINT that LPI has to inject into the Maricunga deal in order to continue “in the club”. What Bearing is clandestinely telling us here is “whoa, whoa, Big Fella! You (ie LPI) ain’t a 50% partner yet as you have been bragging. You are only a 26.4% partner in this NewCo deal and you won’t be a 50% partner until you fork up another hot coochee-coochee mama US$15,000,000 CASH (which starts dribbling out after April 1 THROUGH December 2018) so don’t get ahead of yourself. The question today (March 22) for us is LPI going to bail on us April 1 and walk away from the $6.95M they have “added” to our LIEG net worth or forge full-speed ahead through clueless Chilean mining ministerial flunkies and countless silly-boy stock shorting manipulators bad-mouthing the whole lithium play for their personal gain? We’ll see.
Page 11 assay and test results. Borrrrrrrring. We (LIEG) already know we have a premium choice winner.
Page 12 assay and test results. Borrrrrrrring. We (LIEG) already know we have a premium choice winner.
Page 13 assay and test results. Borrrrrrrring. We (LIEG) already know we have a premium choice winner.
Page 14 pretty pictures.
Page 15 pretty pictures.
Page 16 who owns what chart. Bearing takes the sharp stick out of their tool box and sticks it right into LPI’s eye here by showing in bold print that LPI is only 26.4% “into” this love affair until they cough up another $15,000,000. Now look at LPI’s similar graphic on page 10 of their report. There is deliberately no bold mention of the current 26.4% (read inferior) position in NewCo on this LPI graphic. I wonder why LPI didn’t also mention (in oversize bold font) this small technical fine-print point? Maybe because if Ganfeng or Albemarle or LG-Chem or Tanqui are thinking of swooping in to buy Maricunga in April the question then arises would they (ie the new buyers) be more inclined to negotiate with a minority 26.4% owner (LPI) or a major 76.6% owner (LIEG/Bearing/MSB)? Perception counts for a lot in this deal. LPI wants to be perceived as a 50% partner in NewCo… NOW.
Page 17 special circumstances. Bearing reiterates the fact that only the “old code” sections of this Maricunga property could in theory be mined under the current President in Chile (Michelle Bachelet). Bearing is warning us now that we have to pull the stick out of our posteriors pronto and get Chile to commit to an export-quota on LCE in 2017 NOW! This export quota won’t be equal to Albemarle’s 80,000mt of LCE but it should be at least 48,000mt (not a measly deal-killing 20,000mt). Reference page 23 of the LPI report. LPI tells us in the last sentence that we all have to hold our breath on this project with regard to possible successes until the new president in Chile is installed in December 2017… which is probably going to have to be Sebastián Piñera if we want even half a chance to flourish/expand.
https://panampost.com/ysol-delgado/2017/02/28/pinera-denounces-dirty-campaign-block-candidacy/

Page 18 the gang of five.
Page 19 the gang of seven, the technical advisors who will in due time give us a clean bill of health (for tonnage and environmentally).
Page 20 capitalization of Bearing… which won’t mean sheet if we (LIEG) don’t marry them.
Page 21 hooray ciscoomba Jeremy, yeah yeah go Jeremy.
Page 22 our 574,000mt of LCE… yeah yeah, blah, blah.
Page 23 disclosure.
Page 24 lithium cost curve lifted from page 14 of the LPI report.
Page 25 pretty pictures.
Page 26 pretty pictures.
Page 27 pretty pictures.
Page 28 pretty pictures.
Page 29 pretty pictures.

MSB is in the best “driver’s seat” in this whole NewCo deal… and we (LIEG) are in the second best driver’s seat. LPI is in the third best driver’s seat and "unmarried" Bearing (suckling on the hind teat) is in the fourth best driver’s seat. And all that my dear friends is the facts of life for today March 22, 2017.

The Doctor

PS, do remember we (LIEG) are $6.95M richer today, we'll have a real NI43-101 in hand soon and Bearing has generously covered all our old pesky bothersome bills so far... so that's pretty good in the big scheme of things as our 2 sorta' former sorta' still LIEG executives in Vancouver must be quietly contemplating today.