Tuesday, May 31, 2016
Galaxy Resources and General Mining to merge
Galaxy Resources Limited is set to merge with General Mining Corp Ltd , creating a diversified lithium company with a large wholly-owned portfolio of lithium assets in multiple locations.
The two miners have seen their share prices soar in the past 12 months – along with most other lithium-related shares on the ASX. Galaxy’s share price is up 1,028% and General Mining up 1,064% since a year ago.
The combined company will have the Mt Cattlin project, is developing the Sal de Vida brine project in Argentina and also has the James Bay hard rock project in Quebec, Canada. (Lithium can be sourced from either brine (think salt lakes) or rocks.
This will consolidate ownership of the Mt. Cattlin property which is in production. I have consolidated my lithium holdings down to just Galaxy Resources. I took the opportunity to sell my Albemarle shares today. The reason why I sold Albemarle is two fold; the stock has really run up recently and the fact that Albemarle is not a pure play lithium company. I do not want to get sidetracked trying to keep up with the other parts of the company. If you want to play lithium buy a pure play and buy one of the best. For me that is Galaxy Resources.