The real money has not entered the lithium marketJoe Lawry CEO of Global Lithium says the real money is having a very close look. Most lithium mines take 4 to 5 years to put into production which will facillitate a huge shortage of lithium from now till 2030. When I consider Power Metals and their latest agreement with Sinomine their financial involvement is far less important than the offtake agreement. With a rail line running through Case Lake and directly through the Tanco Mine you have to wonder what would be the timeline to begin processing material from Case Lake at Tanco? I suspect that it would be less than a year. With two site visits you have to suspect that the Simomine Team are impressed enough that they are insisting an offtake agreements right up front.
What might this mean for Power Metals? I am not quite sure however I do hold Mr More in high regard when it comes to business acumen. My guess is PWM could quickly become a cash cow with next to no capital expense as Tanco already exists. I believe once this deal is completed the shares will enter a markup phase and more importantly once the offtake agreement is reached the shares will offer a risk reward profile very seldom found in the Junior Market. GLTA