Topic: How To Invest

Hi Pat: I would like your take on Canada Lithium. Thanks.

Article Excerpt

Canada Lithium, $0.70, symbol CLQ on Toronto (Shares outstanding: 341.5 million; Market cap: $239.0 million; www.canadalithium.com), is nearly finished building an open-pit mine and processing plant at its Quebec Lithium Project, near Val d’Or, Quebec. The project should be fully operational by the end of 2013. (Lithium is used in batteries for electric cars and hybrid vehicles.) The operation, which includes a former lithium carbonate mine from the 1950s and 1960s, will be capable of producing about 20,000 tonnes of battery-grade lithium carbonate annually for 15 years. The company has just raised $13 million by issuing 17.9 million shares at $0.73 each. It will use the funds to finish the mine and processing plant. Canada Lithium recently signed a five-year sales agreement for a minimum of 12,000 tonnes of lithium per year with Tewoo-ERDC, one of China’s largest commodities traders. It has also signed another agreement, for up to 5,000 tonnes per year, with Marubeni Corp., a major Japanese commodities-trading…