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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):&nbsp;&nbsp;<B>August
17, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Li3 Energy, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; font-weight: bold; text-align: center">Nevada</TD>
    <TD STYLE="width: 40%; font-weight: bold; text-align: center">333-127703</TD>
    <TD STYLE="width: 30%; font-weight: bold; text-align: center">20-3061907</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or Other Jurisdiction</TD>
    <TD STYLE="text-align: center">(Commission File</TD>
    <TD STYLE="text-align: center">(I.R.S. Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">of Incorporation)</TD>
    <TD STYLE="text-align: center">Number)</TD>
    <TD STYLE="text-align: center">Identification Number)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Marchant Pereira 150</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Of. 803</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Providencia, Santiago de Chile</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chile</B><FONT STYLE="font-size: 10pt">
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices,
including zip code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>+56 (2) 896-9100</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">(Registrant&rsquo;s
telephone number, including area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Adam S. Gottbetter, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Gottbetter &amp; Partners, LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">488 Madison Avenue, 12th Floor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">New York, NY&nbsp;&nbsp;10022</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Phone:&nbsp;&nbsp;(212) 400-6900</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Not applicable</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former name or former address, if changed
since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>This report and its exhibits contain
&ldquo;forward-looking statements.&rdquo; All statements other than statements of historical facts included in this report and
its exhibits, including without limitation, statements regarding our financial position, estimated working capital, business strategy,
the plans and objectives of our management for future operations and those statements preceded by, followed by or that otherwise
include the words &ldquo;believe,&rdquo; &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;intends,&rdquo; &ldquo;estimates,&rdquo;
&ldquo;projects,&rdquo; &ldquo;target,&rdquo; &ldquo;goal,&rdquo; &ldquo;plans,&rdquo; &ldquo;objective,&rdquo; &ldquo;should,&rdquo;
or similar expressions or variations on such expressions are forward-looking statements. We can give no assurances that the assumptions
upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to
risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements.
There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially
from the forward-looking statements, including, but not limited to: the results of initial exploration, and the determination by
us and POSCAN of whether to pursue any of the contemplated transactions; our ability to raise additional capital to complete exploration,
development and commercialization of the Maricunga Project and other opportunities; future findings and economic assessment reports;
our ability to obtain the necessary operating permits and environmental approvals; our ability to identify appropriate corporate
acquisition and/or joint venture opportunities in the lithium mining sector and to establish the technical and managerial infrastructure
and raise the required capital to take advantage of, and successfully participate in, such opportunities; future economic conditions;
political stability; and lithium prices. For further information about certain risks we face, see &ldquo;Risk Factors&rdquo; in
Amendment No. 7 to our Registration Statement on Form S-1/A, filed with the Securities and Exchange Commission on March 6, 2012.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Except as otherwise required by the
federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking
statement contained in this Report to reflect any change in our expectations with regard thereto or any change in events, conditions
or circumstances on which any such statement is based.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 1.01&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entry into a Material Definitive
Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As previously disclosed,
on August 24, 2011, we entered into a Securities Purchase Agreement (the &ldquo;SPA&rdquo;) and an Investor&rsquo;s Rights Agreement
(the &ldquo;IRA&rdquo;) with POSCO Canada Ltd. (&ldquo;POSCAN&rdquo;), a wholly owned subsidiary of POSCO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Item 1.01 of our Current
Report on Form 8-K filed on August 26, 2011 is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 17, 2012,
we entered into an Additional Agreement to Stock Purchase Agreement (the &ldquo;Additional Agreement&rdquo;) with POSCAN which,
among other things, modifies certain provisions of the SPA. The Additional Agreement reduced POSCAN&rsquo;s purchase price per
Unit (as defined below) for the Second Closing (as defined below) from $0.21 per share to $0.16 per share, and reduced the exercise
price of all of the warrants sold under the SPA (the &ldquo;Unit Warrants&rdquo;) from $0.40 per share to $0.21 per share. Pursuant
to the Additional Agreement, we also agreed to issue to POSCAN a two-year warrant (the &ldquo;Bonus Warrant&rdquo;) to purchase
5,000,000 shares of our common stock at an exercise price of $0.15 per share. Furthermore, the Additional Agreement provides that,
subject to certain exceptions, we must issue additional shares of our common stock to POSCAN in the event that we issue or sell
any such shares to third parties for a price of less than $0.16 per share at any time during the 18 months immediately following
the Second Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Additional Agreement
provides restrictions on our use of the proceeds from the Second Closing, and includes our agreement to use our best efforts to
obtain a Chilean lithium production concession and to take certain steps towards commercialization of our flagship Maricunga property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The foregoing is a
summary of the principal terms of the Additional Agreement, New Warrants and Bonus Warrant and are qualified in its entirety by
the detailed provisions of the actual documents, the forms of which are filed as exhibits to this Current Report and are incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 3.02&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unregistered Sales of Equity
Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 17, 2012,
we closed on POSCAN&rsquo;s second tranche of investment under the SPA (the &ldquo;Second Closing&rdquo;), selling 62,499,938 Units
to POSCAN for $9,999,990, with each &ldquo;Unit&rdquo; consisting of one share of common stock and a three-year warrant to purchase
one share of common stock for $0.21 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The offer and sale
of the Units and the securities contained therein pursuant to the SPA, as modified by the Additional Agreement were exempt from
the registration requirements of the &rsquo;33 Act by virtue of Section 4(2) thereof and Regulation D and/or Regulation S promulgated
thereunder, as transactions by an issuer not involving a public offering. POSCAN represented its intention to acquire the securities
for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends will
be affixed to the certificates issued in such transaction. POSCAN represented and warranted, among other things, that it is an
accredited investor within the meaning of Regulation D and/or a non-U.S. person within the meaning of Regulation S, that it has
the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of an investment in our
common stock and has the ability to bear the economic risks of the investment, and that it has adequate access to information about
us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Immediately following
the Second Closing, POSCAN held an aggregate of 100,595,238 shares of our common stock (or approximately 26.1% of the outstanding
shares), Unit Warrants to purchase an aggregate of 100,595,238 shares of our common stock and the Bonus Warrant to purchase 5,000,000
shares of our common stock. Accordingly, POSCAN may be deemed beneficially to own 206,190,476 shares of our common stock, or approximately
42.0% of the outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 8.01&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 20, 2012,
we issued a press release relating to the Additional Agreement and the consummation of the Second Closing. Attached hereto as Exhibit
99.1 and incorporated by reference herein is a copy of that press release.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The information in
this Item 8.01 and Exhibit 99.1 attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934,
nor shall it be deemed incorporated by reference in any filing under the Securities Act, except as may be expressly set forth by
specific reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are filed or furnished with this Report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; font-weight: bold; border-bottom: Black 1pt solid">Exhibit</TD>
    <TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 89%; font-weight: bold; border-bottom: Black 1pt solid">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Agreement to Securities Purchase Agreement, dated as of August 17, 2012, between Li3 Energy, Inc. and POSCO Canada, Ltd.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant to be issued pursuant to Securities Purchase Agreement as modified by the Additional Agreement.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant to be issued pursuant to the Additional Agreement.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press Release, dated August 20, 2012 (furnished, not filed).</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[Signature page follows.]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">Li3 Energy, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Dated:&nbsp;&nbsp;August 23, 2012</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-style: italic"><FONT STYLE="font-weight: normal; font-style: normal">/s/
    Luis Saenz</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name:&nbsp;&nbsp;Luis Saenz</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp;&nbsp;Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August
17, 2012
Li3 Energy, Inc.
(Exact name of registrant as specified in
its charter)
Nevada
333-127703
20-3061907
(State or Other Jurisdiction
(Commission File
(I.R.S. Employer
of Incorporation)
Number)
Identification Number)
Marchant Pereira 150
Of. 803
Providencia, Santiago de Chile
Chile
(Address of principal executive offices,
including zip code)
+56 (2) 896-9100
(Registrant's
telephone number, including area code)
Copy to:
Adam S. Gottbetter, Esq.
Gottbetter & Partners, LLP
488 Madison Avenue, 12th Floor
New York, NY  10022
Phone:  (212) 400-6900
Not applicable
(Former name or former address, if changed
since last report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
This report and its exhibits contain
"forward-looking statements." All statements other than statements of historical facts included in this report and
its exhibits, including without limitation, statements regarding our financial position, estimated working capital, business strategy,
the plans and objectives of our management for future operations and those statements preceded by, followed by or that otherwise
include the words "believe," "expects," "anticipates," "intends," "estimates,"
"projects," "target," "goal," "plans," "objective," "should,"
or similar expressions or variations on such expressions are forward-looking statements. We can give no assurances that the assumptions
upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to
risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements.
There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially
from the forward-looking statements, including, but not limited to: the results of initial exploration, and the determination by
us and POSCAN of whether to pursue any of the contemplated transactions; our ability to raise additional capital to complete exploration,
development and commercialization of the Maricunga Project and other opportunities; future findings and economic assessment reports;
our ability to obtain the necessary operating permits and environmental approvals; our ability to identify appropriate corporate
acquisition and/or joint venture opportunities in the lithium mining sector and to establish the technical and managerial infrastructure
and raise the required capital to take advantage of, and successfully participate in, such opportunities; future economic conditions;
political stability; and lithium prices. For further information about certain risks we face, see "Risk Factors" in
Amendment No. 7 to our Registration Statement on Form S-1/A, filed with the Securities and Exchange Commission on March 6, 2012.
Except as otherwise required by the
federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking
statement contained in this Report to reflect any change in our expectations with regard thereto or any change in events, conditions
or circumstances on which any such statement is based.
Item 1.01	         Entry into a Material Definitive
Agreement
As previously disclosed,
on August 24, 2011, we entered into a Securities Purchase Agreement (the "SPA") and an Investor's Rights Agreement
(the "IRA") with POSCO Canada Ltd. ("POSCAN"), a wholly owned subsidiary of POSCO.
Item 1.01 of our Current
Report on Form 8-K filed on August 26, 2011 is incorporated herein by reference.
On August 17, 2012,
we entered into an Additional Agreement to Stock Purchase Agreement (the "Additional Agreement") with POSCAN which,
among other things, modifies certain provisions of the SPA. The Additional Agreement reduced POSCAN's purchase price per
Unit (as defined below) for the Second Closing (as defined below) from $0.21 per share to $0.16 per share, and reduced the exercise
price of all of the warrants sold under the SPA (the "Unit Warrants") from $0.40 per share to $0.21 per share. Pursuant
to the Additional Agreement, we also agreed to issue to POSCAN a two-year warrant (the "Bonus Warrant") to purchase
5,000,000 shares of our common stock at an exercise price of $0.15 per share. Furthermore, the Additional Agreement provides that,
subject to certain exceptions, we must issue additional shares of our common stock to POSCAN in the event that we issue or sell
any such shares to third parties for a price of less than $0.16 per share at any time during the 18 months immediately following
the Second Closing.
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The Additional Agreement
provides restrictions on our use of the proceeds from the Second Closing, and includes our agreement to use our best efforts to
obtain a Chilean lithium production concession and to take certain steps towards commercialization of our flagship Maricunga property.
The foregoing is a
summary of the principal terms of the Additional Agreement, New Warrants and Bonus Warrant and are qualified in its entirety by
the detailed provisions of the actual documents, the forms of which are filed as exhibits to this Current Report and are incorporated
herein by reference.
Item 3.02	         Unregistered Sales of Equity
Securities
On August 17, 2012,
we closed on POSCAN's second tranche of investment under the SPA (the "Second Closing"), selling 62,499,938 Units
to POSCAN for $9,999,990, with each "Unit" consisting of one share of common stock and a three-year warrant to purchase
one share of common stock for $0.21 per share.
The offer and sale
of the Units and the securities contained therein pursuant to the SPA, as modified by the Additional Agreement were exempt from
the registration requirements of the '33 Act by virtue of Section 4(2) thereof and Regulation D and/or Regulation S promulgated
thereunder, as transactions by an issuer not involving a public offering. POSCAN represented its intention to acquire the securities
for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends will
be affixed to the certificates issued in such transaction. POSCAN represented and warranted, among other things, that it is an
accredited investor within the meaning of Regulation D and/or a non-U.S. person within the meaning of Regulation S, that it has
the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of an investment in our
common stock and has the ability to bear the economic risks of the investment, and that it has adequate access to information about
us.
Immediately following
the Second Closing, POSCAN held an aggregate of 100,595,238 shares of our common stock (or approximately 26.1% of the outstanding
shares), Unit Warrants to purchase an aggregate of 100,595,238 shares of our common stock and the Bonus Warrant to purchase 5,000,000
shares of our common stock. Accordingly, POSCAN may be deemed beneficially to own 206,190,476 shares of our common stock, or approximately
42.0% of the outstanding.
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Item 8.01	         Other Events
On August 20, 2012,
we issued a press release relating to the Additional Agreement and the consummation of the Second Closing. Attached hereto as Exhibit
99.1 and incorporated by reference herein is a copy of that press release.
The information in
this Item 8.01 and Exhibit 99.1 attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934,
nor shall it be deemed incorporated by reference in any filing under the Securities Act, except as may be expressly set forth by
specific reference.
Item 9.01	         Exhibits
The following exhibits are filed or furnished with this Report.
Exhibit
Description
10.1
Additional Agreement to Securities Purchase Agreement, dated as of August 17, 2012, between Li3 Energy, Inc. and POSCO Canada, Ltd.
10.2
Form of Warrant to be issued pursuant to Securities Purchase Agreement as modified by the Additional Agreement.
10.3
Form of Warrant to be issued pursuant to the Additional Agreement.
99.1
Press Release, dated August 20, 2012 (furnished, not filed).
[Signature page follows.]
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SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Li3 Energy, Inc.
Dated:  August 23, 2012
By:
/s/
    Luis Saenz
Name:  Luis Saenz
Title:  Chief Executive Officer
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