LI3 Energy Inc (fka LIEG)

[Dr_Vonschellan]

LPI's moneyman Sprott Capital reports_we_are_a_$1Billion_project
Months ago I discussed Sprott Capital Partners being involved on this project in helping to raise money for 36.2% partner LPI. It appears and it may indeed be that Sprott is LPI's most trusted financial advisor today. Sprott Capital's latest analysis dated November 10, 2017 (click here for the report) definitely appears spot on in its evaluation of the project and forecast of the full potential we will be able to enjoy if Sebastian Pinera is elected the new president of Chile on November 19.

In the October 24 post on iHub which was a tongue-in-cheek backdoor pitch to SinoChem to buy into LIEG at the very minimum or to buy the entire project for $1,030,000,000 based on a 7% cap rate effective through Q2 2019 which would probably be a good revised pitch to make to Rio Tinto now that they are a lithium "player" in Chile. Click here for iHub post
I calculated that this project was a 26 year project and indeed worth $1,030,000,000 based on a typical year full-operation income
_______________________________________________CapRate__Company Value
LPI income per year 50.0% = $35,991,000________________7.0%__$514,157,143
Minera Salar Blanco income per year 32.3% = $23,250,000___7.0%__$332,142,857
LIEG income per year 17.7% = $12,741,000_______________7.0%__$182,014,286
_______________________________________________________$1,028,314,286

Sprott Capital in their November 10, 2017 reports confirms we are indeed a $1,000,000,000 project in paragraph 1 in the discussion on DCF (Discounted Cash Flow) valuation. Sprott on page 5 last paragraph confirms this is a 27-year project which is in line with my established variable in the Excel spreadsheet that this is a 26 year LOM (Life Of Mine) project.

The Sprott Capital report is a decent update on the project and I encourage all LIEG shareholders to read it.

If it turns out that Bearing cannot raise the cash to make/pay the parity adjustment (payable to us) to facilitate the 34.76 shares of LIEG for one BRGRF share on Merger Day Exchange Day which I would estimate to be approximately $4,500,000 prior November 19 and near $17,000,000 after November 19 then the prophylactic Vancouver membrane which separates LIEG from LPI is going to dissolve I will predict as that $17M ideally payable before December 31, 2017 is going to be a bridge-too-far for the Canadians assuming BRGRF stays in the toilet around $.66 to $.78pps. If that prophylactic Vancouver membrane is removed then we will be and must remain keenly focused on what Sprott Capital tells the world (ie the Lithium Investment Community) about LPI and the Maricunga NewCo JV since Sprott seems to now be elevated to a new level of Macro-Vision High Priest in this slowly-getting-bigger Maricunga Rodeo.

The Doctor