LI3 Energy Inc (fka LIEG)

[Dr_Vonschellan]

Mick_Z, I completely_understand_your_position. Clear_as_a_bell.

I was able to put in an order to buy LTHHF shares this morning on the OTC.
There is no trading halt on LPI in America. Your mates can probably call their Australian brokers to "flip" their shares over to the American exchange for sale for 3 days. I know the Americans can do the "virtual" reverse.

With regards to what Bearing owes LIEG we would need to travel into a worm hole and slip one month into the future closer to the drop dead deadline for the merger to actually take place assuming the current Bearing shareholders vote in favor of the marriage.

IF the Merger-Day/Exchange-Day ever happens the 17.7% Maricunga NewCo JV share will de divided as follows if there is no vindictive/carpetbagger behavior employed.
BRZ (Canadians) = 10.3%
BRGRF (USA)___= 7.4% which is us Legacy LIEG shareholders.
Total__________= 17.7%

If for example LIEG on Merger-Day/Exchange-Day should be $.0568pps and BRGRF stays in the toilet at $.686pps then Bearing would need to cough up $20,600,000 to satisfy their on paper debt to LIEG shareholders to reach parity which could prove to be a huge stretch for them.
34.76 LIEG shares at $.0568pps_____________ = $1.98
1 BRGRF share at $.686___________________= ($.686)
Cash payable to LIEG shareholder to reach parity = $1.29/exchange

16,000,000 BRGRF shares x $1.29/exchange = $20,600,000 cash payable (prorata) to all LIEG shareholders which includes Uncle Posco.

It is possible that in the What-If Scenario #1 sale of the Maricunga NewCo JV 13.8% share (which you guys don't own yet) to Fulin that the Chinese are encouraged through "good fellow" trade-offs to pay around $20,000,000 for the straight-out tangible asset of Land in Chile. Of that $20M approximately $13M of it goes to Martin Borda with the last $7M to Bearing/LIEG.

That $7M reduces Bearing Exchange-Day parity payment to Legacy LIEG shareholders down to $13M.

If the new Fulin-Era Maricunga NewCo JV ownership percentages are as follows:
MSB 32.3% minus 14.6%____= 17.7%
LIEG 17.7% minus 00.0%____= 17.7%
LPI 36.2% minus 18.5%_____= 17.7%
Fulin 13.8% + 14.6% + 18.5% = 46.9%
Total__________________________100%

... then we simply would need for LPI and MSB to approve BRZ (Canadians) selling 3% of their 10.4% share in the Maricunga NewCo JV to Fulin for $13,000,000 much like a handsome burly strong big brother (Fulin) would do out of altruistic kindness in his heart for his crippled retarded half-blind little brother (BRZ Canadians).

The final percentages ownership in Maricunga NewCo JV would then become:
MSB 32.3% minus 14.6%________= 17.7%
LIEG 17.7% minus 03.0%________= 14.7% (ie 7.3% for BRZ Canadians and 7.4% for Legacy LIEG shareholders)
LPI 36.2% minus 18.5%_________= 17.7%
Fulin 13.8% + 14.6% + 18.5% + 3% = 49.9%
Total__________________________100%

If this scenario plays out then I see little chance of Bearing suffering any huge class-action lawsuit over parity payment to Legacy LIEG shareholders (including our Uncle Posco) on Merger-Day/Exchange-Day.

The Doctor