It's a nice feeling being right sometimes.
As expected, Western Lithium was unable to finance at a fairly high price of $0.70/share. They have since adjusted back down to $0.50 and is aiming for an ambitious $5 million cash (ie. 10 million shares). They do have a well known management team - I'd keep watch on that group, estimate price should easily be $1+ if summer is set for a slight recovery in markets.
Mountain Capital - has historical brine resource in stable Alberta but seemed heavily promotional - I tend to be more skeptical of those. If you're lucky get in early and get out when it runs - these likely won't be the groups with multimillion buyouts from majors, but you could still get 40-50% gain... in a good market. It is currently trading at $0.075, down from its $0.15 a mere week ago, I suspect it may drop closer to $0.06.
I couldn't find much on the management team's past successes (and failures) so I'll leave it for investor's own due dilligence. Word of cautions - seems like Cloudbreak Resources is run by the same group - it's struggling a bit at the moment - make your own judgement about if that's an indication re: MCI... some of the investor comments on SH are pretty vicious, take both sides (buy/sell) with a grain of salt.
Canada Lithium seems to be speeding aheah with their Feasibility scheduled for 2009 - I'm anxious to see how they fare in lithium carbonate production from their Quebec mine. Their tout has been updated to 20,000 tonnes production - no time frame given. Trading ranges around $0.13-0.17 - easy potential run to $0.25, CEO Judy Baker has signed some credible group of experts onto the board.
Finally, TNR Gold Corp - remember we recommended a buy here along with CLQ a few weeks back?
Turns out they acquired a property next to the only lithium brine producer curently in North America.
The project is in Nevada : perfect for brine processing.
For everyone who's confused - lithium is usually mined as a byproduct. Brines however, is essentially dissolved lithium - meaning a simple process of evaporation is generally all that you need to extract the lithium. No messy underground mines, dangerous mine shafts, transporting huge rock wastes!
So why doesn't everyone just find brines then?
Well, it's also not that easy. The world's biggest brine resource is well, in Bolivia. And Bolivia hasn't been very cooperative lately about foreign investment going in and taking their resources - you get the idea?
That means as the world need more and more compact cell phones, lithium-battery-powered Hybrid Cars, glass products, etc, lithium demand is starting to overtake the large amount of lithium supplies... it makes sense! For such a versatile rare metal that's so infused in our daily lives, surely the prices should be going up now that even President Obama's touting energy conservation?
Don't worry, it is!
TNR Gold and Rodinia both respectively announced property in the area and has seen at least 70-100% gain in their starting share price. Why I like these two is because they are still diversified if you take away the lithium. Rodinia stands on its own Uranium property, while TNR has the mammoth Los Azules copper project (11.2 billion lb - $0.85/lb production cost that's awaiting feasibility report) and a controversial David-Goliath fighting with Xstrata over this back-in. Not to mention joint ventures with likes of Suramina (Lundin), La Mancha Resources, & NovaGold.
It's very rare seeing a junior with such low market cap that's able to strike deal with so many company. Last I checked they also have a deal with Barrick and BHP Billiton in Alaska..!! Check their page for more details. Not being a one-trick pony is huge - not to mention their management must have massive connections to swing so many deals!!
Since our last coverage of TNR / Rodinia area - this lithium Nevada thing has taken off.
Rodinia announced the property acquisition and action plan on it April 1st, 2009.
RM jumped almost 300% to $0.40 at one point on this spectacular acquisition. This next one though - we saw coming... even as we speak today there was another acquisition by this aggressive group.Rodinia closes Clayton Valley lithium property deal
2009-04-01 15:56 ET - News Release
Mr. Donald Morrison reports
Rodinia Minerals Inc. and its Wyoming subsidiary, Donnybrook Platinum Resources Inc., have closed the transaction with GeoXplor Corp. in respect of 250 unpatented mining claims located in the Clayton Valley, Esmeralda county, Nevada.
Clayton Valley is home to the only lithium producer in the United States. This plant extracts lithium from brines pumped from aquifiers below the valley and has been in production since 1967. The plant is designed to produce 1.2 million kilograms of lithium per year and to date has produced an estimated 50 million kilograms of lithium. Rodinia Minerals' property is adjacent to this production facility.
After receiving TSX Venture Exchange acceptance, the company has issued the first tranche of shares due to GeoXplor as part of the agreement, being 500,000 common shares, which are subject to a four-month hold period expiring on July 24, 2009. The agreement with GeoXplor gives Rodinia Minerals and Donnybrook the option to acquire a 100-per-cent interest in the property, subject to a 3-per-cent royalty in respect of lithium carbonate production and all other ores or minerals mined or extracted from the property. The option is exercisable by paying GeoXplor a total $322,000 (U.S.) over four years of which $25,000 (U.S.) has been paid to date; issuing to GeoXplor a total of 2.5 million shares of Rodinia Minerals, as to 500,000 shares on regulatory approval (issued) and 500,000 shares each year thereafter for four years, and incurring expenditures on exploration of the property of not less than a total of $2-million (U.S.) over four years. Rodinia Minerals may, at any time, accelerate any of the cash payments, share issuances or expenditures and can satisfy the expenditures requirement by delivering a prefeasibility study. The royalty can be bought down at any time upon payment of $1-million (U.S.) for each 1 per cent of the royalty. The agreement also provides that if, at any time, a positive feasibility study in respect of the property is delivered, or Rodinia Minerals and Donnybrook dispose of their interest in the property in any way, GeoXplor will be paid $2-million (U.S.) in cash, or, at the election of GeoXplor, in that number of shares of Rodinia Minerals as have a total value of $2-million (U.S.) determined on the basis of the closing market price per share of Rodinia Minerals' shares on the day preceding GeoXplor's election.
TNR jumped 200% since our last feature blog for various TSX lithium juniors. I'll cover their most interesting press release from this week tomorrow.TNR Gold stakes Fish Lake Valley in Nevada
2009-04-16 18:33 ET - News Release
Mr. Gary Schellenberg reports
TNR GOLD ACQUIRES NEVADA LITHIUM BRINE PROPERTIES
Following TNR Gold Corp.'s philosophy of generating quality projects and its recent entry into lithium and rare metals, the company is acquiring, by staking, the 640-acre Fish Lake Valley property in Nevada.
TNR Gold believes Fish Lake Valley has geological features similar to those which have acted as a trap for lithium brines in Clayton Valley. Chemetall-Foote Corp.'s Silver Peak operation, located in Clayton Valley 34 kilometres east of the property, is the only lithium brine producer in North America and has been in production since 1966.
United States Geological Survey sampling at Fish Lake Valley in 1976 found lithium brines on surface. One of these samples, located on TNR Gold property, contained 200 parts per million lithium. This falls within the range of concentrations reported to be used for production ponds at Chemetall-Foote's plant in Clayton Valley. To date, Chemetall-Foote's Silver Peak operation is estimated to have produced 234,000 tonnes of lithium carbonate at a rate of approximately 5,700 tonnes per year.
The presence of lithium-bearing surface brines shows that modern Fish Lake Valley has geological and climatic conditions where lithium brine can form. At Clayton Valley drilling conducted by the United States Geological Survey and Chemetall-Foote has shown that as climatic conditions went through cycles, successive layers of lithium-bearing evaporite were deposited.
During 1979, the United States Geological Survey conducted drilling operations in Fish Lake Valley as part of a lithium study. One of those holes, located on TNR Gold property, returned 21 parts per million lithium in water at 16.8 metres depth. This level of lithium in water is anomalous and similar to those found in Clayton Valley in proximity to subsurface brines.
John Harrop is the company's qualified person on the project as required under National Instrument 43-101, and he has reviewed the technical information contained in this press release.
TNR arranges spin-out of lithium, rare metals projects
2009-04-27 10:17 ET - News Release
Mr. Gary Schellenberg reports
TNR GOLD ANNOUNCES PROPOSED SPIN-OUT OF LITHIUM AND RARE METALS ASSETS
TNR Gold Corp. intends to spin out its lithium and rare metals projects into a newly incorporated, wholly owned British Columbia subsidiary of TNR Gold, International Lithium Corp. Upon completion of the transfer of the lithium and rare metals projects to International Lithium, TNR intends to distribute up to 75 per cent of the securities of International Lithium to TNR shareholders. Application will also be made to list the shares of International Lithium on the TSX Venture Exchange.
It is anticipated that the spin-out transaction will be completed pursuant to a plan of arrangement and will be subject to exchange, regulatory, court and shareholder approval, by not less than two-thirds of the votes cast at a special meeting of TNR shareholders which will be called to approve the spin-out transaction. Full details of the proposed spin-out transaction will be included in the information circulate to be sent to TNR shareholders in connection with the special meeting to be held in summer 2009, but it is anticipated that TNR shareholders of record will be entitled to receive one share and one full tradable warrant of International Lithium for every four shares of TNR held as of the as-yet-determined record date. The warrant will be exercisable at a price equal to a 50-per-cent premium to the company's listing price for a two-year period. In conjunction with the listing of the shares of International Lithium, TNR intends to complete an equity financing on terms to be determined, subject to regulatory approval.
Further details regarding the spin-out transaction, the proposed timing thereof and any proposed financing, will be released in the upcoming months.
TNR believes this corporate holding structure will deliver further shareholder value as International Lithium will be focused on increasing critical mass through acquisitions of high-potential lithium and rare metal projects globally. Current shareholders will continue to benefit from the group's ability to identify and add value to early stage projects for joint venture model, while enjoying the growth of the new subsidiary and the market's newfound appreciation for efficient lithium energy innovations. "With a subsidiary that is marketed as a focused and dominant player in the growing lithium and rare metals explorer realm, we believe it will provide the necessary visibility and efficiency that potential joint venture partners are looking for," states president and chief executive officer Gary Schellenberg.
TNR has reserved the domain name. The site will be linked to the current TNR website and feature property information, lithium industry articles, and relevant technical information. The site is currently in the process of being designed and constructed.
Completion of the spin-out transaction is subject to a number of conditions, including regulatory approval, shareholder approvals and approval of the British Columbia Supreme Court. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the information circular to be prepared in connection with the spin-out transaction, any information released or received with respect to the spinoff may not be accurate or complete and should not be relied upon. Trading in the securities of exploration and development stage resource companies should be considered highly speculative.
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