SOURCE: AXcess News

AXcess News

January 13, 2010 10:33 ET

AXcess News: POSCO to Invest in Pan American Lithium

NEW YORK, NY--(Marketwire - January 13, 2010) - Korean steel producer POSCO looks to invest $5 million in Pan American Lithium Corp. (TSX-V: PL), formerly Etna Resources, Inc. (TSX-V: ETN), in keeping with POSCO CEO Joon-yang Chung saying the steel producer would double investments in non-ferrous metals in 2010.

POSCO CEO Joon-yang Chung said during a signing ceremony in late November for a letter of understanding relating to a magnesium refinery business to be built in Gangwon Province South Korea, "POSCO will be aggressively pursuing projects and future materials like lithium as the new growth engines for the next generation of the company."

The world's No.4 steelmaker said on Monday that it would double spending in 2010.

POSCO will spend 10 trillion won ($8.9 billion) this year on expanding its facilities and on acquisitions, the Korea Economic Daily reported.

Etna Resources (TSX-V: ETN) changed its name to Pan American Lithium Corp. (TSX-V: PL) on Tuesday, announcing terms of a $5 million Letter of Understanding with POSCO at the open of trading in Toronto this morning.

The deal calls for POSCO to complete its due diligence on Etna Resources' lithium properties within 30 days. The funding matches the capital Etna would require to control the lithium recovery and all other mineral production in a Phase One development of an exploitable mineral brine recovery at the Cierro Prieto Geothermal Plant, located 30 km south of Mexicali in Baja California, Mexico. Etna Resources optioned the rights in the last quarter of 2009. Total annual recoverable minerals is estimated at between $450 to $500 million. The brines are recovered through 6 square miles of existing sequential evaporation ponds, concentrating metals values to roughly 11.7 times original salt content.

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