We have a very important news for this ambitious Junior involved in Lithium and REE exploration and development play. Now it confirms its project generator model and its ability to advance its extensive portfolio of properties by J/V deals. Looks like International Lithium will concentrate its resources on its lithium brine project in Argentina and its Nevada lithium brine early stage exploration targets. This first J/V deal on one of the smaller Lithium hard rock exploration targets in Ontario provides a new valuation matrix to the whole portfolio of this junior just before International Lithium Corp. to be spin out.
Company has posted new presentations for TNR Gold and International Lithium from PDAC in Toronto in March 2010. Interesting to note here is that REE Big Beaverhouse property is presented in TNR Gold portfolio - can we expect company activities to be centered around REE after lithium assets spin out?
"TNR Gold Corp. is employing the project generator model. For those of you who may not know what a project generator model is, a word of explanation is in order. “Project generators” are companies that pick up early stage exploration ground when there are historical or scientific reasons to believe a property is prospective for a given mineral. Because these properties are obtained at an early stage of development, the cost of obtaining them is very low.As a project generator, TNR then uses its intellectual capital rather than hard currency capital to add value to its shareholders. By carrying out relatively low cost early exploration work, it demonstrates with greater confidence, the potential for a given property to host an economically viable mineral deposit. At that point in time, TNR hopes to bring in other companies that are willing and able to spend considerably more money to explore and advance those prospects toward production. TNR will generally retain a carried interest in those prospects into the future or at least a Net Smelter Return on any future production from the property. The prospect generator model is in theory a less risky model because, if other companies are spending considerable amounts of money, they can reduce the number of shares issued to raise capital."
We have a position in this company, please, do not consider anything as an investment advise as usual on this blog.