When demand for something overtakens its supply - we see a jump in price. This is the fundamentals on which Stock Market operates upon.
When Venture companies on TSX Venture do Financings for money they generally quite an accredited investor clause. This indicates to the Exchange that these investors know what they are doing and completely understands the risks involved with investing in a junior mineral explorations company.
After all, there is the risk that nothing will be found. This is part of the systematic risk that many fund managers are willing to accept - since they know that companies that do well with discoveries easily make up the ones that shrivel to nothing.
Invest in 20, make money on 1 homerun that goes to 10,000% over its starting point, and the rest doesn't even become significant anymore.This is a very interesting shotgun approach to investing - and it seems to have worked well for several juniors we have reviewed in the last few months.
A junior with a portfolio of diverse projects all across the world is likely to attract joint venture partners - which can mean property payments while at the same time having their projects advanced.
By spotting trends and getting in early, companies like TNR Gold Corp and its to-be-public subsidiary International Lithium Corp has done the same thing for lithium and rare metals. I don't believe in my research I have yet to come across any other public company with as many projects. According to the company, the best part was that so many of the projects were acquired through basic staking. (read: low cost).
Claims staking literally involves going out to the property and putting your claim posts up in the ground and registering your claim posts with the local authorities or governing body. These claims posts usually would then have strings tying them to the next claim post (also helps measures the size of the rectangle). This is why when you see a claim map its all a series of boxes.
Lithium has been featured in prominent news articles almost on a daily basis - Chevy Volt from GM is going to pre-production and is receiving favorable reviews.
What is interesting is each Chevy Volt requires a Lithium-ion battery which will likely need anywhere from 30-50 lbs of lithium carbonate. I will leave the mathematical projections for another in estimating what it will mean for the global lithium market is EV/Hybrids were to take up 10% of the current vehicles on the road (likely Roskill Research has something already...). Regardless it bodes very well for lithium exploration companies - some of which we have covered before so here's an update.
Canada Lithium Corp CLQ:TSX - Announced termination of President Judy Baker - unknown reason but she stays on Board. Signed one year marketing deal with Mitsui of Japan. Trading around $0.28 has a past producer Quebec Lithium mine.
First Lithium MCI:TSX - has fallen back significantly after attempting to jump into White Gold area place (thanks to Underworld's huge discovery 104metres of +4 g/t gold). They have commenced a 43-101 so could be interesting as that gets closer - very little share outstanding. While it could be considered a me-too approach to some of the earlier players, having a name with Lithium should certainly help as lithium becomes more mainstream.
Trading around $0.07 after hitting a high of $0.14 on lithium 43-101 report commencements.
Rare Element Resources (RES:TSX) has done very well since our last mention jumping significantly to over $2 following Jim Dines' recommendation. Keep in mind this group has a much more advanced project with 43-101 resource of (TREO) estimates - stands for Total Rare Earth Oxides. Mining101 originally wrote about RES here.
http://www.cbc.ca/canada/north/story/2009/05/05/nwt-tnr-rare-metal.html
2nd company shows interest in mining rare metals near Yellowknife
Last Updated: Tuesday, May 5, 2009 | 3:33 PM CT Comments8Recommend21
A Canadian mining exploration company has bought an old mine near Yellowknife, with plans to explore for rare, sought-after metals used in electronics and electric cars.
TNR Gold Corp. of Vancouver recently purchased the Moose 2 property 115 kilometres east-southeast of the N.W.T. capital that is known to have deposits of lithium and tantalum, among other minerals.
TNR president Gary Schellenberg told CBC News that the former mine, which was in use during the 1940s and 1950s, looks promising for lithium and tantalum — two metals, he said, that have seen their prices skyrocket recently.
"Tantalum is used in the electronics industry, and again, it's fairly rare. And of course, everybody's cellphones have a bit of tantalum in it," he said Monday.
"Lithium, of course, is getting a lot of press lately, due to the increased demand and all the talk of lithium batteries in electric cars."
Schellenberg said the company will conduct some exploration and sampling this summer in order to determine whether reopening the mine would be viable.
The Moose 2 site is not on the N.W.T.'s road system, but Schellenberg said it is accessible by boat and float plane.
TNR is the second company that has expressed interest in exploring for rare metals in the Yellowknife area.
Avalon Rare Metals Inc. is looking at the feasibility of mining for terbium and other minerals at its Thor Lake site, about 100 kilometre southeast of the city.
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