Orrick, Herrington & Sutcliffe LLP (Orrick) has advised POSCO Canada Ltd. (POSCAN) on two strategic investments that will secure the future development of lithium and other minerals in Central America. POSCAN is a wholly owned subsidiary of POSCO Corporation, the third-largest steelmaker in the world by market value (and the largest in South Korea) and the most profitable in Asia.

 

A team of U.S.-Korean corporate lawyers, led by partners Mark Lee and David Cho, advised POSCAN on the two deals which closed on September 14, 2011.

 

The first investment was an agreement with Li3 Energy, Inc. (Li3), a U.S.-listed and South America-based global exploration company in the lithium and minerals sector, to purchase common stock and a follow-on investment based on the satisfaction of certain conditions relating to Li3’s lithium-brine development project in Maricunga, a large salt-flat area located in northern Chile. 

 

The second investment was an agreement to purchase common shares of Pan American Lithium Corp (PALC), a lithium exploration company with 11 lithium and potash brine projects across Chile. The investment will provide working capital for PALC to develop its lithium and potash brine projects while allowing POSCAN the right to construct a production or research and development facility for the extraction of lithium and other minerals from brines at one of PALC’s Chilean brine properties.

 

Mark Lee commented: “We are very pleased to have worked with POSCO in the development of its lithium and minerals exploration program in Central America.” He added “These investments are good examples of the breadth and depth of Orrick’s industry knowledge and experience in helping Korean clients take advantage of the current global opportunities in the energy and natural resources sectors.”