Major Australian Lithium Producer Merging With Chilean Brine Explorer
Last Thursday, a binding letter agreement was executed to combine Salares Lithium Inc and Talison Minerals to strategically merge their respective lithium assets and create the world's largest, publicly traded lithium production and exploration company.
By Dave Brown - Exclusive to Lithium Investing NewsLast Thursday , a binding letter agreement was executed to combine Salares Lithium Inc. (CVE: LIT) and Talison Minerals Pty Ltd to strategically merge their respective lithium assets and create the world's largest, publicly traded lithium production and exploration company. Effectively the merger should provide an attractive diversified mix of lithium mineral and brine assets in both Australia and Chile, offering a combination of the Australian -ased lithium minerals production with promising relatively low cost lithium brines exploration properties located in Chile. Lithium investors will be extremely interested in observing this development as Talison has announced immediate operational expansions are required in production to satisfy substantial growth in lithium demand from Chinese battery producers, for whom the company is the primary supplier. The demand has largely been driven by government policies encouraging alternative energy vehicles in pursuit of reduced reliance on oil imports, energy security and environmental objectives. Unanimous support from both boards of directors to endorse the transaction appears to indicate an excellent fit and strong cooperation between the corporate cultures. Following completion of the regulatory procedures and filing requirements, the merged group will be known as Talison Lithium Limited with offices in Perth, Australia and Vancouver, Canada. The Plan of Arrangement is anticipated to be implemented by the end of September, 2010, subject to obtaining all necessary approvals and satisfaction of other conditions. The expectation is for Talison Lithium to become a publicly traded company listed on Toronto Stock Exchange, subject to approval and customary merger conditions. First Quarterly Results Reported for Lithium Americas Corp. Last week Lithium Americas Corp. (TSE: LAC), reported financial quarterly results for the period ending May 31, 2010. As this was the first official reporting period since the inception of the company comparative results were not available. Key operational highlights and updates since February included the acquisition of an additional 6,477 hectares, increasing the land package associated with its principal property to 43,451 hectares, and increasing its overall land package in Argentina to 125,704 hectares. The company has also completed a high-resolution seismic tomography survey over its main property area located within the Cauchari salt lake reconstruct the salt lake basin and identify the brine bearing aquifers . Performing preliminary air lift tests in reverse circulation holes and in diamond drill holes have measured rates that indicate the aquifer is thick, and has high yields allowing for the extraction of brine from the aquifer. The drilled reverse circulation holes have also approximately doubled the width at approximately 40 percent greater depth of the initial lithium/potassium brine area that was used in calculating the inferred resource estimate. The quality of the concentration in one of the drill results also recorded the highest lithium brine concentration value to date on the exploration program with 946 milligrams per litre lithium over a length of 17 metres.