Vancouver, British Columbia, December 23, 2011 - Toronto based eResearch has issued a StockPotentials report on Canada Lithium Corp. (TSX:CLQ) (OTCQX:CLQMF).
StockPotentials reports cover smaller companies that have little or no following on the Street, that eResearch believes would be primarily of interest to retail investors.
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The Company holds a 100% interest in the Québec Lithium Project, consisting of 12 contiguous claims covering 405 hectares, located near Val d'Or. The company recently issued an updated NI 43-101 resource estimate that indicates Total Measured and Indicated Mineral Resources have increased to 33.2 million tonnes grading 1.19% lithium oxide. There are another 13.8 million tonnes in the Inferred category, grading 1.21%.
| Quebec Lithium Project Mineral Resources by Category (0.8% Li20% cut-offs) | ||
| Category | Tonnes (millions) | Li20 % |
| Measured | 6.9 | 1.18 |
| Indicated | 26.3 | 1.19 |
| Inferred | 13.8 | 1.21 |
eResearch reports the company is transitioning into a developer and producer status.
The Company plans to build an open-pit mine and in the 3rd quarter started the initial site construction of a processing plant, with capacity to produce approximately 20,000 tonnes of battery-grade lithium carbonate annually by the end of 2013. The company anticipates a mine life of 15 years.
Metallurigical tests of samples from the project produced battery-grade lithium carbonate, which will be marketed to Japan's Mitsui and Company.
Although China produces only 11% of the world's lithium, Asia dominates the battery market, and currently makes 98% of the world's lithium batteries. Interestingly, Chile and Argentina supply about 55% of the world's lithium, primarily from brine.
Lithium prices have remained fairly steady over the last few years, following a significant price increase in the early 2000's. FMC forecasts the annual demand for lithium, primarily for batteries, will accelerate from the current 7% - 8% range to 18% - 20% by 2020.
In February, the company raised approximately $126 million from a bought-deal financing priced at $1.50 per share, and co-led by Scotia Capital and Macquarie Capital Markets. The underwriters fully exercised the over-allotment option, resulting in the issuance of approximately 84 million shares.
As of December 11th, the company was still sitting on $105 million in cash.
Canada Lithium currently trades at $0.52, and with approximately 253 million shares outstanding, the company is capitalized at $132 million, a number not much higher than its cash position.
For more information on the company, please visit their website at www.CanadaLithium.com, or contact Olav Svela at 416-361-2821 or by email at osvela@canadalithium.com (mailto:osvela@canadalithium.com). Their external investor relations is handled by Christine Stewart at Renmark Financial. She can be reached at 416-644-2020 or email cstewart@renmarkfinancial.com.
For a copy of the report, contact eResearch at www.eresearch.ca (http://www.eresearch.ca/). While on their site, sign up for their free reports. eResearch does not receive a fee for the preparation and publication of StockPotentials reports.
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