Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Wacky lithium story keeps going

Thom Calandra Thom Calandra, www.thomcalandra.com
0 Comments| July 9, 2009

{{labelSign}}  Favorites
{{errorMessage}}

TORONTO – This is the ever rechargeable story of Canada Lithium (TSX: V.CLQ), the Toronto company that “terminated” its CEO after she negotiated what looked like a top-notch Japan trading pact.

Japan’s Mitsui & Co. just announced it is in “bed” with Canada Lithium, a Toronto company that hopes to develop its Quebec Lithium Project for Asian automobile and battery makers. See release here.

Canada Lithium responded in lukewarm fashion that yes, Mitsui & Co.’s assertion that it has selling rights to Canada Lithium’s potential lithium is true and not really news. The tiny company, once headed by Judy Baker and replaced by Kerry Knoll, said the arrangement with the Japanese trading house was revealed in April. See that release here.

What the flag-nog is going on? One CEO out. Another in. News that is not really news? The lithium stock in Canada trading spurts back to almost its one-year high of 30 cents Canadian or so. CLQ was selling Thursday for 25 cents Canadian.

Judy Baker, “terminated” several weeks ago for no reason that anyone wants to disclose, tells me today she “knows nothing … no, nothing.” I quote her directly.

Kerry Knoll, the new CEO, last time I talked to him had not even been to the mine site in Quebec. That was after the company fired Ms. Baker. Mr. Knoll also had yet to read the documents of Judy Baker’s trading pact with Mitsui, he told me. See story please.

This time, Kerry Knoll is not responding to my questions. Or at least he was not at press time. And of course, please see this story.

Then, tacked to the end of the latest Canada Lithium press release is the fact the company just issued one million stock options to an executive and board member. To whom?

“It looks to me like they are negotiating in the headlines,” Christopher Grove, an executive with another specialty metals company, tantalum mine developer Commerce Resources (TSX: V.CCE), says.

“I don’t think that you can chalk this discrepancy up to translation problems or misunderstandings,” says Mr. Grove, who is well versed in corporate communication techniques. “In total I must say that it seems pretty unusual.”

The CEO of another lithium company, Jay Chmelauskas of Western Lithium (TSX: V.WLC), calls the sparring press releases a “good development. It shows that the Japanese are going to new incremental producers for new supply sources for their hybrid vehicles.”

For sure. And the Chinese. And the Indians. Western Lithium, by the way, is staking its lithium plans to Nevada in the United States. This is why many companies, also including TNR Gold (TSX: V.TNR), are staking claims to lithium brine and lithium rock.

TNR is in Nevada, too – and the company tells me it is having success with China investors.

What is my view of all this? Well, I think Mitsui might have a terrific pact with Canada Lithium – so good that Canada Lithium, under new leadership, might worry about any wiggle room.

Ms. Baker, who raised $3 million for her Canada Lithium and took it from five cents a share to 25 cents or so Canadian, just might have handed Mitsui exclusive marketing rights “without commitment to quantity, price, schedule of product delivery or financing.” (That is language I am borrowing from a good friend in the business of mining contracts.)

Just maybe, Canada Lithium, wanting some kind of bankable interest in its Quebec project so that it could get on radar screens, let Mitsui have a pure and pristine option agreement with few string attached, in favor of Mitsui.

We’ll see. It is on my radar screen. By the way, Mitsui’s press release said Mitsui might take a stake in Canada Lithium to ensure supply of the element and its amazing lithium carbonate properties. This just might explain why the stock is flowing like water these days in flooded trading. Radar screens.

Ticker Trax™

Please see tickertrax.comto learn more about this wealth service and its eight Planetary Prospects. Subscribers, please click here for password-secure Ticker Trax. Coming: A new Instant Value service for trigger fingers.

·Bonus: Please nip into our Ticker Trax™ discussion group – only on Stockhouse.

·For an index of free Thom Calandra, please click here.

·For subscription service Ticker Trax, please visit: www.tickertrax.com.

THOM CALANDRA of Ticker Traxhelps his audience find value in a quagmire of investment choices. Thom co-founded CBS MarketWatch andMarketWatch.com. As the voice of Thom Calandra's StockWatch and The Calandra Report, Thom pegged $300-ounce gold as a long-term hold.

HOLDINGS: Thom’s holdings are listed for all Stockhouse members on www.Stockhouse.com under the “portfolio setting” for user TCALANDRA. It is public and free to view. He and his family own recently minted gold and silver coins. He does not own Magma Energy or Pan American Silver or Canada Lithium or TNR Gold or Commerce Resources or Western Lithium.

Ticker Trax is published by Stockgroup Media Inc. Ticker Trax is an information service for subscribers and neither Stockhouse nor Thom Calandra is a broker or an investment advisor. None of the information contained therein constitutes a recommendation by Mr. Calandra or Stockhouse/Stockgroup Media that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Ticker Trax does not purport to tell or suggest the investment securities subscribers or readers should buy or sell for themselves. Subscribers and readers of Ticker Trax should conduct their own research and due diligence and obtain professional advice before making any investment decisions. Ticker Trax will not be liable for any loss or damage caused by a reader’s reliance on information obtained in the reports. Subscribers and readers are solely responsible for their own investment decisions. Opinions expressed in Ticker Trax are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in Ticker Trax should be independently verified. The editor and publisher are not responsible for errors or omissions or responsible for keeping information up to date or for correcting any past information. Ticker Trax does not receive compensation of any kind from any companies that may be mentioned in the report. Any opinions expressed are subject to change without notice. Owners, employees and writers may hold positions in the securities that are discussed in Ticker Trax. PLEASE DO NOT EMAIL THOM SEEKING PERSONALIZED INVESTMENT ADVICE, WHICH HE CANNOT PROVIDE. Copyright 2009 all rights reserved.



{{labelSign}}  Favorites
{{errorMessage}}

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today

Featured Company