Using a 116mm spindle BB on a frame that specifies a 112.5mm
 

So as the title says. I'm going to try and install a 116mm spindle BB to a frame that is specified a 112.5mm.
The frame is a Merlin XLM, and the BB is a Shimano BB-M952.

I found out that the BB will fit in the shell, my concern is the spindle length. Will this 3.5mm difference be on just one side, or will it be divided even 1.75mm on each side. Either way, will these discrepancies pose any issue on the bike's drivetrain?

I appreciate any help.

Bottom bracket spindle lengths are not determined by the frame - they are determined by the crankset you use and the chainline you are going for.