eResearch Initiates Coverage for Nemaska Exploration (TSXV:NMX) - Video Summary Posted on InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, May 13, 2011 - Toronto based eResearch Corp. has
initiated coverage on Nemaska Exploration (TSXV:NMX) with a speculative buy
recommendation with a twelve month target price of $0.95, which is roughly
double the current price of $0.50. With 74 million shares outstanding, the
company is capitalized at approximately $36 million.
InvestmentPitch.com has posted a "video news alert" based on this research
report this link is not enabled, please visit www.investmentpitch.com and enter
"Nemaska" in the search box.
The following information has been taken from the eResearch report.
eResearch states that Nemaska is a company in transition, and its corporate
makeover provides intriguing opportunities for investors. Within the next few
months, Nemaska expects to complete the spin-out of its non-lithium properties
into a new company. These other properties are also located in Quebec, and
contain nickel, copper, silver, gold, and elements of the platinum group.
Nemaska shareholders will own about 16% of the new company, with Nemaska
retaining about 65%, after the closing of the proposed IPO.
The divesture will enable the company to concentrate on bringing its flagship
Whabouchi lithium project, one of the world's largest, into production by 2013.
A significant and positive catalyst for the stock is that Nemaska hopes to form
a strategic partnership with China's Tianqi Group. Tianqi's subsidiary company,
Tianqi Lithium, which is China's biggest lithium battery material producer,
could purchase up to 50% of Nemaska's lithium production and assist in
distributing the remainder of the production to other Chinese lithium product
makers.
Tianqi Lithium currently buys 100% of its processed spodumene from Australia's
Talison Lithium Limited. To mitigate geographic risk, which became evident in
the case of Australia's 2010 plan to impose a 40% mining tax, and given concerns
about Talison's monopoly on the imported spodumene market, Tianqi Lithium
decided to diversify its supply base and turned to Nemaska.
Further, to the extent required, Tianqi could provide needed financing to bring
Whabouchi into production, thereby mitigating the need for Nemaska to revisit
the capital markets.
The Whabouchi property has NI 43-101 compliant resource estimate of 9.7 million
tonnes in measured plus indicated resources containing 351 million pounds of
lithium oxide, and another 15.4 million tonnes of inferred resources containing
532 million pounds of lithium oxide.
Of the other properties, the Lac Levac property has a NI 43-101 resource
estimate of 2.04 million tonnes in measured and indicated resources, containing
47.4 million pounds of nickel and 24.6 million pounds of copper, and 1.05
million tonnes in inferred resources containing 18.8 million pounds of nickel
and 7.4 million pounds of copper.
Technical reports on both these properties are available on www.sedar.com.
For a more information about Nemaska Exploration, please visit their website at
www.nemaskaexploration.com. Their investor relations is handled by Wanda Cutler
who may be reached at 416-303-6460 or wandajcutler(at)gmail.com. For a copy of the
research report, contact eResearch at www.eresearch.ca.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan(at)investmentpitch.
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Source: InvestmentPitch via Thomson Reuters ONE
[HUG#1515861]
Unternehmensinformation / Kurzprofil:
Datum: 13.05.2011 - 16:03 Uhr
Sprache: Deutsch
News-ID 54654
Anzahl Zeichen: 4256
contact information:
Kategorie:
Business News
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