Canada Lithium's new $250m plant is running and they will start to eat away at sales. Canada Lithium and Glen Eagle Lithium combined will have a 25 year mine life. Glen eagle's lithium next door to Canada Lithiums is acutally better because it is at or near surface and they will have very little waste to deal with thus it will be a very cheap way of getting lithium. Right now with the limited and shallow drilling done to date they have a 43-101 guarantee of 7.5m tonnes of lithium but if you drilled like Canada Lithium did next door you would have close to 20m tonnes of very hgih grade lithium. market cap of $9m and pea coming out in a week or so which will probably show a payback of 1 year!!! 7.5M TONNES RIGHT NEXT DOOR TO A NEW $250M PLANT THAT YOU DON'T NEED TO SPEND MONEY ON BUILDING? NO BRAINER
Western Lithium (WLC) would be a smarter acquisition at this time. Their permits and demonstration
plants should be in place within 12 months. They have a higher purity grade of lithium and more
of it nearer the surface. The top scrape clay above is also saleable for drilling gel in fracking.
It's a sweet deal right now.
Looks like giant WLC would be just too big a pill for ROC to swallow! Better to stick to their new restructuing and capital allocation plans: raise the dividend, repay debt, repurchase shares, shed non-core businesses and make SMART strategic acquisitions without overpaying.