Topic: How To Invest

Q: Hi Pat: Would you share your opinion of Bearing Resources Ltd.? Is it worth adding to my portfolio? Thanks.

Article Excerpt

A: Bearing Lithium, $0.76, symbol BRZ on the Toronto Venture Exchange (Shares outstanding: 24.8 million; Market cap: $18.4 million; www.bearingresources.ca), will buy U.S.-based Li3 Energy Inc. to gain an interest in the advanced-stage Maricunga lithium project in Chile. Bearing believes the site offers one of the highest-grade lithium deposits in the Americas. Assuming the company completes the Li3 purchase, it will then hold a 17.7% stake in Maricunga. In addition, its joint-venture partners would have already paid all the expenses up to that point, including a Definitive Feasibility Study and more than $30 million U.S. in exploration work. To acquire Li3, Bearing has agreed to pay 16.0 million of its shares and assume Li3’s debt of $2.2 million. Lithium is used in household batteries, glass and ceramics, lubricants, refrigeration, pharmaceuticals, polymers and aluminum production. But the metal mostly goes into lithium-ion and lithium-metal batteries for electric and hybrid-electric cars. Prices have increased lately on rising demand. Most of today’s lithium comes from brine solutions…