iShares 10-20 Year Treasury Bond ETF T.TLH

FYI . . Best GOLONG

[Golongagain]

Lithium is a very light metallic element. It is mainly used aslithium compounds that act as fluxes in the ceramics and glassindustries, and in lubricants. The metal is an important alloyingagent in primary aluminium. Lithium is increasingly being used in rechargeable batteriesused in all aspects of the mobile web, from laptops to cell smartphones. Now lithium is the primary resource used in batteries for thehybrid and electric vehicle markets.

Image by gmeurope via Flickr

Lithiumis mined from spodomen (hard rock) , clay deposits and morepromisingly, from salars or brine lakes. Mining from Salars, (saltlakes) is much less expensive and less labour intensive. The Punaplateau in South America which spans Chile, Argentina and Bolivia holdsmuch of the worlds salars. Junior miners have flocked to the regionover the past two years to stake claims to what is, without argument,the worlds richest lithium deposits.
In July, Talison Lithium announced a merger with publicly traded, junior miner, Salares Lithium which owns the Salares 7 project in the Atacama Deserton the Puna Plateau of Chile which is, we believe, one of the largest,pure lithium deposits in the world, encompassing over 116 hectares in 7Salars or salt lakes, of which Salares owned 100% of five of thosesalars.

In doing so, Talison kills two very big birds with one stone.Firstly, they now own one of the largest pure brine properties on themarket today. As Talison has, up until now, been a spodomen or hard rockminer, the jump into brine production will enhance significantly, theirlithium footprint in todays market, especially in the cheaper toproduce (and more lucrative) brine deposits.
Also, as a result of the merger, Talison will become a publiclytraded company, TLH. Its strike price should be between $3.50 and $4per Talison share, which will return a premium to current SalaresLithium shareholders of 98.6% as the merger of shares is 2.81 Salaresshares for one Talison share.

Image via Wikipedia

This year, the electric vehicles market is ramping up from California to Tokyo (see the Tesla roadsterand other EVs parked at a charging station - right) Every major autocompany on the planet has an EV in some stage of production at thiswriting.

With the advent of the Global X Lithium ETF and lithium indexespopping up around the market, I believe that the strike price mentionedis very low as these ETFs and indexes will have to include Talison at or near the top of their lists (you cannot ignore a world leader in any market).
As Talison goes public I am making it my conviction stock pick.Look for Talison Lithium Ltd to double the above price by Christmas (ifnot the first day of trading-Circa Sept 23rd 2010) and double again bySpring 2011.