Friday, July 16, 2010

Lithium M&A Watch: Salares Lithium is still Halted, other stocks to watch now. TNR.v, LIT.v, RM.v, LI.v, LMR.v, WLC.v, CLQ.v, LAT.v,, TSLA, GM

"There is money and there is appetite for the new sector, now we can prep our Lithium and REE plays to be on the radar screens later in this cycle.

Image representing Tesla Motors as depicted in...Image via CrunchBase

Tomorrow's reaction will be the best PR campaign after BP's one with Oil Spill for the whole idea about existing alternative to the Oil in our transportation. Even in stagflation with very low nominal growth there will be Pockets of Growth and money will be chasing it. Tesla can not justify any valuation at this level - the only idea about value is Tesla S model still years away from the market, but it is the new Netscape and nobody would like to miss next Google as well. There was simply no place to invest in electric cars play yet and we can see the result today. Long term value will be in a Value Chain for Electric Car. Lithium and REE will be at the foundation of this disruptive technology."

Salares Lithium remains Halted at this moment after yesterday announcement about deal with Talison and we are monitoring our Junior Lithium space in Canada: who will be the next candidate for a J/V deal or outright buy out in this Micro cap leveraged play on Peak Oil and Electrification. Lithium.Com is back and there are only a few credible teams with lithium portfolios to feed appetite for this strategic investments.

"Our Second Bull Leg in Lithium market has officially started today with this M&A play: Talison buys Lithium Brine developer Salares Lithium. Please notice the premium:

"Based on a price of CAD$3.50 per Talison share, the terms of the proposed transaction provide Salares shareholders with a premium of approximately 98.2% (equal to CAD$1.25 per Salares share) based on the trailing 20 day volume weighted average price for Salares shares on the TSX Venture Exchange."

Chinese backing Talison are making their way into lithium brine market in Chile and are ready to pay a very high price to secure supply. Now Canadian Lithium Juniors should enjoy their moment and potential targets for J/V deals are all on one hand in the lithium brine market in Chile and Argentina."

Enhanced by Zemanta
Post a Comment