LI3 Energy Inc (fka LIEG)

[Dr_Vonschellan]

Fear mongers crying about upcoming default.
The only default of some consequence I see upcoming is to MSB on January 18, 2018 for $454,901.

Please see page F-11 in the recently updated 10-K filing which reads Click Here.
As of June 30, 2015, the Company had received a total of $1,220,000 of loans from MSB (of which $980,000 was received during the year ending June 30, 2015), bearing interest of 8.5% per annum and due within 18 months from the date of receipt. On January 19, 2016, the Company entered into an additional agreement with MSB whereby the Company and MSB agreed to offset the $1,000,000 Additional Payment MSB previously agreed to provide to the Company against $1,000,000 of the Company’s notes payable to MSB and $134,901 of accrued interest owed to MSB was rolled into the Company’s existing note payable. In addition, MSB loaned an additional $100,000 to the Company and MSB waived the 13 shares in Minera Li which were pledged by the Company to MSB as security for its notes payable. The resulting $454,901 loan payable and accrued interest is due on January 18, 2018, bears interest at 8.5% per annum, and is secured by 5 of the Company’s shares in Minera Li.

Martin Borda head of MSB appears to have a decent record of treating us (esp treating our 2 lovable dopey senior LIEG BODs) with TLC (tender love & care) much like Tom Cruise in Rainman did with his mentally-challenged brother (Dustin Hoffman). Martin is currently not saber-rattling or pre-threatening to pull the rug out from underneath us on January 18, 2018 and since the LIEG/Bearing agreement could happily dissolve on December 31, 2017 we will have 18 days to find a new sugar daddy using the "back up" BOD left behind in Santiago if our two wayward sons don't make it back to the fold from Vancouver in one piece. I am willing to take the chance that we (LIEG) can in those 18 days find a new JV partner at much better terms. I am also willing to take the chance that Martin won't chop our heads off for a piddling $454,901 if we successfully excise this cancerous Beering from our backside. After all we are funny in the boardroom, we throw good parties, our Boys are surprisingly adept at constructing decent one-side beneficial booby-trapped contracts full of nice loop holes in our favor, our fun-loving groupies/hanger-ons are actually quite pretty, we have a good sense of style, and most of our guys speak reasonably good Spanish... plus we know how to card count just like Dustin Hoffman.

This upcoming default is not worrying me all that much... is it really that worrisome to you? I think given the fact Uncle Posco has not bailed out yet is still our warm fuzy comfort blanket.

Perhaps the fact that no one in our BOD is going to have a semi-fat expense account to bleed at will or have a monthly salary after December 31 (assuming we VOTE NO on the Reverse-Split) is the more scary consequence now warranting this new wave of fear mongering?

For those shareholders here wanting "new management" you will probably get your wish also (if we don't find a better new JV partner in those 18 days) as LIEG will be forced to give up more board seats in the "prime" Minera Li partnership agreement which is better than having our two lithium balls of 17.7% reduced/castrated down to one lithium ball of 7.4% in the Maricunga JV project. Once this "deep state" Minera Li board of Directors is realigned we (LIEG) will have virtually no say in how the LPI/MSB/LIEG joint venture is eventually run but at least we (ie we LIEG mushroom shareholders) will be able to share in the future JV profits garnered by "smarter" management at the same 17.7% rate.

The Doctor