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Talison backs brine with Salares Lithium merger

July 27, 2010 - 00:00 GMT

KEYWORDS: Talison , Salares Lithium , li-ion , batteries

Talison Minerals Pty Ltd has given the clearest signs yet that brine is the future for the lithium industry after it struck a deal to merge its spodumene business with Toronto-based brine explorer Salares Lithium Inc

The deal will see the newcomer, Salares, swap equity with the world’s largest spodumene miner which is now part of Talison Lithium Ltd since its tantalum and lithium were separated.

Talison Lithium will own 80% of the new company while Salares’ investors will gain a 20% share. In terms of share value, one Salares share will be worth 2.81 of every Talison share.

The Perth-based company, owned by private equity group Resource Capital Funds (RCF), also announced the creation of a C$40m. ($38m.) investment fund for Salares 7 in the Atacama Desert. The funding and backing of the Greenbushes miner is about as big a boost the exploration stage project can get after only being in the industry for little over a year.

The deal will resonate, not because of the future for the Salares 7 project in Chile’s Atacama,...

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