LI3 Energy Inc (fka LIEG)

[Dr_Vonschellan]

December 31, 2017 can't_come_fast_enough_for_us at LIEG
In the latest 7/26/2017 draft (to the SEC) of the Merger Agreement I draw the reader's attention to page 80 paragraph 3 which reads:

Termination of the Merger Agreement
Generally and except as specified below, the merger agreement may be terminated and the merger may be abandoned at any time prior to the completion of the merger, including after the required approval of the Li3 stockholders or the Bearing shareholders:
by mutual written consent of Bearing and Li3, by action of their respective boards of directors;
by either Li3 or Bearing if:
the merger has not been consummated on or prior to December 31, 2017, subject to an automatic 60-day extension under certain circumstances, and provided that the failure to have consummated the merger on or prior to such date, as it may be extended, is not primarily due to the failure of the party seeking to terminate to have fulfilled any of its obligations under the merger agreement in breach of the merger agreement;

As you all know, we (ie LIEG/MSB) were supposed to receive the second tranche $15,050,000 payment from LPI by November 30, 2017 which would entitle the Aussies to a full unfettered 50% stake in the Maricunga project. It probably goes without saying that Beering was counting (ie salivating like a starved half-mad wild dog) on that $15,050,000 payment being made on time by November 31, 2017 to bring their risk down to near zero percent before they pulled the trigger on the merger thus fully castrating us LIEG shareholders of our 17.7% (two balls) share in the project and effectively reducing our share down to 7.4% (one ball). It is my hunch that without that full payment in hand that Beering would have deep misgivings over marrying us poor perpetually LIEG paupers... their backroom Canadian money-men are not risk takers especially on anything lithium. You all do remember the Chinese not long ago flooding the international market with rare metals thereby killing your last mining investment?

Or worse, are LPI investors pulling out of LPI over this "real iffy" convoluted quagmire in faraway Banana Republic Chile (raising the risk factor for Vancouver) by selling off LPI stock at a disastrous new low AUS$.285pps as they run to the exits? And without LPI in this brew... we're all gonna' taste like old Canadian hockey athletic male genitalia supporters after a brutal sweaty hockey game with 2 overtime periods.

Well, well, lookie, lookie, as we read the new IRR from LPI we see on pages 5 and 6 that LPI accelerated a partial payment (ie teaser) of $5,500,000 on the second tranche.... but oh look.... they can't pay (or perhaps will not pay if things go south) the last $7.5M until the second quarter of 2018. The new payment plan looks like this:
US$2 million in November 2017 – ownership to 36.2%
US$2 million in March 2018 – ownership to 39.8%
US$2 million in June 2018 – ownership to 43.5%
US$3.5 million in June 2018 – ownership to 50%..... thank you MSB (if applicable), if this is your doing you sly fox.

Soooooo, the question you need to ask yourself is does Bearing feel lucky?
will Bearing beg on its knees to extend the merger agreement until June 30, 2018 or will Bearing play fearless-devil, charging full-speed ahead guns blazing and execute the merger agreement before the termination date of December 31, 2017 going "full in... for better or for worse, till death do we part?

BRGRF was down another 2 cents Monday. 3% drop to $.65pps
It could be the Bearing guys got an early copy of the LPI IRR and are heading for the exits as the risk factor (plus stretched out payments) is now rising to unacceptable levels? Tsk, tsk.

If Bearing gets cold feet and bails out on December 31, 2017 (or we stand up and terminate the merger) then the handcuffs and gags come out of our LIEG mouths... along with whatever else falls out.

The Doctor