COMMITMENTS AND CONTINGENCIES

3 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 11. COMMITMENTS AND CONTINGENCIES

As previously discussed, on January 29, 2016, the Company executed a non-binding LOI with Wealth for a transaction between the companies under the following terms: 

• Wealth will undertake an equity financing of CAD$3 million.

• Post-financing, Wealth and Li3 shareholders will each hold 50% of the new company.

• The use of proceeds of the financing will be to advance Li3's Maricunga lithium project in Chile and pursue other corporate initiatives.

• The new company will have seven Board seats, with Wealth holding four and Li3 holding the remaining three seats.  The management of Wealth will largely remain intact and Li3's current management team will support the new company as necessary.

• Wealth will have a 60-day exclusivity period to complete its due diligence and financing.