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Showing posts with label Talison Lithium Limited. Show all posts
Showing posts with label Talison Lithium Limited. Show all posts

Thursday, August 23, 2012

Rockwood buys Talison Lithium for $724 Million Cash!

Talison Lithium Limited

TSX : TLH




August 23, 2012 08:15 ET

Cash Acquisition of Talison Lithium by Rockwood



PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 23, 2012) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH) announced today that it has entered into a definitive Scheme Implementation Agreement ("SIA") with Rockwood Holdings, Inc. ("Rockwood") under which it is proposed that Rockwood, or a wholly-owned entity of Rockwood, will acquire 100% of the ordinary shares in the capital of Talison (the "Shares") by way of a Scheme of Arrangement ("Scheme") under the Australian Corporations Act 2001 (Cth) for cash consideration of C$6.50 per share. This values the equity of Talison at approximately C$724 million on a fully diluted basis.
The cash consideration of C$6.50 per Share, represents:
  • A 53% premium to Talison's last closing price on August 22, 2012 of C$4.24;
  • A 52% premium to Talison's 10 day volume weighted average price ("VWAP") of C$4.28; and
  • A 59% premium to Talison's 30 day VWAP of C$4.08.
The cash consideration provides an opportunity for Talison Shareholders to realise immediate value for their Shares at a substantial premium to market and reflects the size, strategic nature and growth potential of Talison's lithium operations.
The SIA entered into by Talison and Rockwood also proposes that Rockwood, or a wholly-owned entity of Rockwood, will acquire 100% of the options to acquire Shares ("Options") through an option scheme of arrangement ("Option Scheme") for cash consideration of C$6.50 per Option less the exercise price for that Option.
The board of directors of Talison ("Talison Directors") has considered the Scheme and the Option Scheme and unanimously recommends that Shareholders and Optionholders vote in favour of the Scheme and the Option Scheme, in the absence of a Superior Proposal (as defined in the SIA) and subject to an Independent Expert concluding that the Schemes are in the best interests of security holders. Each of the Talison Directors intends to vote the Shares and Options held or controlled by them in favour of the Scheme and Option Scheme.
Resource Capital Fund IV L.P. and Resource Capital Fund V L.P. (collectively, the "RCF Funds"), together having a 36.8% shareholding interest in Talison, have each confirmed to Talison that, in the absence of an offer which the RCF Funds determine is superior, they support the Scheme and intend to vote all of their Shares in favour of the Scheme.
Peter Robinson, Chairman of the Board of Talison, said, "Today marks a significant milestone in the history of Talison. Under the Scheme, Rockwood is offering cash consideration representing an attractive premium for Shareholders and allowing Shareholders to realise immediate value for their Talison Shares. This reflects positively on Talison's position in the global lithium market."
Macquarie Capital in Australia and Canada are acting as financial advisor to Talison. A special committee comprised of independent directors of Talison has received a fairness opinion from Macquarie Capital, effective on the date hereof, which provides that, subject to the assumptions and limitations contained therein, the consideration to be received by Shareholders pursuant to the Scheme is fair, from a financial point of view, to the Shareholders.
As Talison is an Australian incorporated company listed on the Toronto Stock Exchange, the Scheme will be implemented in accordance with the requirements of the Australian Corporations Act and any applicable Canadian requirements. Consistent with best practice in Australia, an Independent Expert will shortly be appointed to opine on whether the Scheme and the Option Scheme are in the best interests of Shareholders and Optionholders respectively.
Rockwood is a NYSE-listed global specialty chemicals and advanced materials company. Rockwood focuses on global niche segments of the specialty chemicals, pigments and additives and advanced materials markets.
The expectation of Talison's Directors is that Talison, as part of the Rockwood group, will continue to support its existing lithium concentrate customers in China and the rest of the world.
Scheme Details and Timetable
The completion of the Scheme and Option Scheme is subject to minimal conditions including:
  • Approval under the Australian Foreign Acquisitions and Takeovers Act 1975 (Cth);
  • Regulatory approvals from the Australian Securities and Investments Commission and the Australian Court;
  • Approval of the requisite majority of Talison Shareholders at a meeting of Shareholders;
  • No Material Adverse Change (as defined in the SIA) occurring to Talison; and
  • No Prescribed Occurrence (as defined in the SIA) occurring in relation to Talison.
Further due diligence is not a condition to completion of the Scheme or the Option Scheme.
The SIA contains terms typical for a transaction of this nature for an Australian incorporated company, including "no shop" and "no talk" provisions (subject to typical directors' fiduciary duty exemptions), notification and matching rights.
A mutual break fee ("Break Fee") of C$7 million is also payable in certain circumstances. Talison is not liable to pay the Break Fee by reason only of the Scheme not being approved by Talison shareholders or by the Australian Courts, nor in the event that Talison Directors withdraw their recommendation for the Scheme as a result of the Independent Expert finding that the Scheme is not in the best interests of Talison Shareholders. A Break Fee is payable by Rockwood if it materially breaches an obligation under the SIA and fails to remedy such breach. Any payment of the Break Fee will be in full and final satisfaction of all claims to which the party paying the break fee may be subject.
Implementation of the Scheme and the Option Scheme will also be subject to the terms and conditions set out in the Scheme and Option Scheme documentation when issued.
Further details are included in the executed SIA which is available on SEDAR at www.sedar.com and on the Talison website www.talisonlithium.com.
Scheme and Option Scheme booklets will be mailed to Shareholders and Optionholders. The booklets will contain, among other things, further information about the Scheme, the Option Scheme, a copy of the Independent Expert's report and related securityholder meeting materials. Talison expects that the approval of the Scheme and the Option Scheme will be put to Shareholders and Optionholders at meetings expected to be held in October 2012, and that the Scheme and Option Scheme will be completed shortly thereafter.
Advisors
Macquarie Capital is acting as financial advisor to Talison. Clayton Utz and Blake, Cassels & Graydon LLP are acting as legal advisors to Talison.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.
Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the unaudited condensed consolidated interim financial statements of Talison and the related notes thereto as at March 31, 2012 and for the nine months ended March 31, 2012 and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2011 dated September 23, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

Contact Information


Talison Lithium
Frank Wheatley
Executive Director
+1 (604) 985 0528
www.talisonlithium.com

Macquarie Capital
Michael Ashforth
Executive Director
+61 (8) 9224 0644

Macquarie Capital
David Cobbold
Managing Director
+1 (416) 848 3654
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Friday, February 10, 2012

Talison Q2 results and 2012 outlook very positive

Talison Lithium LimitedTalison Lithium Limited

TSX : TLH




February 10, 2012 06:00 ET

Talison Lithium Reports Second Quarter Fiscal 2012 Results


Higher pricing agreed, declining cash operating costs, strong operating cash flow and advancement in growth projects reaffirm Talison's leadership position in the global supply of lithium

PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 10, 2012) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH)
SECOND QUARTER HIGHLIGHTS
  • 15% price increase secured across the product range from January 1, 2012
  • Production of 89,015 tonnes, a 7% year over year increase
  • EBITDA margin increased to 24% due to a 10% year over year decline in cash operating costs per tonne
  • Strong operating cash flow of A$12m, compared to (A$4.3m) for the same period a year ago
  • Port congestion in late December 2011 resulted in approximately 38,000 tonnes lithium concentrate being delayed into fiscal Q3, but no change in full fiscal 2012 outlook
  • The preliminary engineering study for the Minerals Conversion Plant was completed. The next phase of the project was initiated and a location for the plant has been selected
  • Construction of the Stage 2 Expansion of the Greenbushes Lithium Operations remains on schedule and on budget
  • Outlook remains positive, with demand for chemical-grade lithium concentrate from new and existing customers remaining solid during Q2
SECOND QUARTER HIGHLIGHTS Three Months ended
December 31 (unaudited)
Year Over Year
(in thousands A$, unless noted otherwise) FY12 FY11 % Change
Sales Volume (tonnes lithium concentrate) 75,221 97,559 (23%)
Sales Price (Average US$/tonne) US$310 US$315 (2%)
Revenue $22,686 $32,810 (31%)
Cash Operating COGS ($/tonne lithium concentrate) $187 $208 (10%)
EBITDA $5,387 $7,233 (26%)
EBITDA Margin 24% 22% +169bps
Net Profit $5,642 $5,297 7%
Basic EPS (cents/share) 5.2 5.6 (7%)
Approx. Volumes Sold (t/LCE(1)) 11,200 14,500 (23%)
Approx. Production (t/LCE) 13,200 12,400 7%
Note:
(1) LCE means lithium carbonate equivalent.
Talison Lithium Limited today announced results for the second quarter of the 2012 fiscal year(1).
"We were very pleased with our achievements during the second quarter, in particular the decline in cash operating costs, our strong operating cash flow, the move to the next phase in the development of our Minerals Conversion Plant and the 15% price increase achieved from January 1, 2012." Peter Oliver, Chief Executive Officer and Managing Director commented. "The delay of some shipments into the third quarter due to unplanned Port shutdowns negatively impacted our financial results for the quarter. However, the results were still pleasing and with the recognition of the delayed sales in the third quarter, our fiscal 2012 expectations have not been affected."

SECOND QUARTER FINANCIAL RESULTS
Talison sold 75,221 tonnes of lithium concentrate (approximately 11,200 tonnes LCE) in the second quarter, representing a 23 per cent decline over the corresponding period of fiscal 2011. Sales of lithium concentrate during the six months ended December 31, 2011 represented a 4 per cent increase over the corresponding period of fiscal 2011.

Sales in the quarter were affected by significant congestion at the Port of Bunbury due to berth closures and unplanned Port shutdowns impacting all Port users. This resulted in approximately 38,000 tonnes of Talison's lithium concentrate sales that were ready at the Port for shipment in early December being delayed into January 2012. These shipments departed early January and will be included in third quarter sales.
Investors are cautioned that sales are made in large shipments that can be irregular in timing and in varying proportions of technical-grade and chemical-grade lithium concentrates. The irregular timing of shipments and varying proportions of technical-grade and chemical-grade lithium concentrates can result in variations in individual quarters between production and sales, the average sales price and average cash operating cost per tonne sold.

Talison generated revenue of A$22.7 million in the quarter, a 31 per cent decline from the second quarter of fiscal 2011 due to a combination of the shipment delay, and a 4 per cent increase in the value of the A$ against the US$ from the second quarter of fiscal 2011.

The Company realized an average sales price per tonne of lithium concentrate of US$310, a 2 per cent decrease over the second quarter of fiscal 2011, due to a lower proportion of higher value technical-grade products sold during the quarter, compared to the same period in fiscal 2011. Underlying technical-grade prices between the two periods increased by an average of 13% in US$ terms.

Production volume increased 7 per cent over the second quarter of fiscal 2011 to 89,015 tonnes of lithium concentrate (approximately 13,200 tonnes LCE).

Cash operating cost of goods sold per tonne of lithium concentrate was A$187, a 10 per cent decline over the second quarter of fiscal 2011 due to the new lithium mineral reserve announced in May 2011 and a 7% increase in the chemical-grade plant yield.

EBITDA(2) was A$5.4 million, reflecting an increase of 169bps in the EBITDA margin to 24 per cent of revenue despite a 4 per cent appreciation in the value of the A$. A constant exchange rate would have resulted in an EBITDA margin of approximately 27 per cent, reflecting the increase in average sales price and reduction in cash operating cost of goods sold during the quarter.

(1) Information in this press release is in relation to the unaudited condensed consolidated interim financial statements of Talison as at December 31, 2011 and for the three and six months ended December 31, 2011 (collectively, the "Financial Statements") and should be read in conjunction with Financial Statements. The financial information contained in this press release is derived from the Financial Statements, which were prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts in this press release are expressed in Australian dollars ("A$") unless otherwise identified. References to "C$" are to Canadian dollars and references to "US$" are to United States dollars.

(2) The term "EBITDA" is a non-IFRS financial measure. For further information and a reconciliation of EBITDA to its IFRS-compliant income statement, refer to "Non-IFRS Performance Measures" in Management's Discussion and Analysis of the financial condition and results of operations of Talison Lithium Limited as at and for the interim period ended December 31, 2011 (which can be found on Talison's SEDAR profile at www.sedar.com).

SECOND QUARTER OPERATIONS
During the quarter Talison advanced its growth projects.

Greenbushes Stage 2 Expansion
The Stage 2 Expansion at the Greenbushes Lithium Operations remains on budget and on schedule. During the quarter, foundations for the new chemical-grade plant were completed, installation of steelwork was nearing completion, and the conveyor belt to the finished product stockpile was in construction. Talison continues to expect commissioning of the Stage 2 Expansion during the fourth quarter of fiscal 2012.

To view the "Stage 2 Expansion progress at the Greenbushes Lithium Operations" photo, please visit the following link: http://media3.marketwire.com/docs/greenbushes_stage2.jpg
 
Minerals Conversion Plant
Responding to growing global demand for an additional secure supply in lithium chemicals, Talison is aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate ("Minerals Conversion Plant"). The preliminary engineering study in relation to the proposed construction of the conversion plant was completed during the second quarter.

The next phase of the project, which includes an engineering study for a 20,000 tonnes per annum lithium carbonate plant and obtaining the required environmental and regulatory approvals, commenced in early calendar 2012. As recently reported, the Kwinana Industrial Area, located 40km south of Perth in Western Australia has been selected as the location for the plant and Talison is currently finalizing tenure arrangements for its preferred site. Talison anticipates making an investment decision on the project by the end of calendar 2012 and is targeting commissioning during 2015.

Discussions with potential customers are continuing positively. As recently reported, Talison has entered into Memoranda of Understandings (MOU) with Sojitz Corporation and Mitsui & Co. Ltd. The MOUs provide a framework on which to discuss on a non-exclusive basis collaborative marketing and distribution of lithium carbonate produced by Talison to customers in Japan.

To view the "Location of the proposed Minerals Conversion Plant in the Kwinana Industrial Area" photo, please visit the following link: http://media3.marketwire.com/docs/talison_mineralplant.jpg
 
Greenbushes Resource Development and Salares 7 Project
Due to the encouraging progress in the development of the Minerals Conversation Plant, Talison is accelerating resource drilling at the Greenbushes Lithium Operations. The Company's objective is that lithium mineral reserves will be increased and the mine life extended to support future additional expansions of the lithium concentrate processing plants and a potential doubling in capacity of the minerals conversion plant. Talison expects to invest approximately A$1.9 million during fiscal 2012 in this resource definition drilling program.

Consequently, Talison is reallocating resources for the balance of fiscal 2012 from the Salares 7 Project. The drilling program at the Salares 7 project will be deferred and the focus will be on the environmental approvals process. This is not expected to affect the overall development timetable for the Salares 7 Project.

FISCAL 2012 OUTLOOK
Talison expects production of lithium concentrate in the third quarter to be in-line with the second quarter of fiscal 2012. Sales of lithium concentrate during the third quarter will include the 38,000 tonnes delayed during the second quarter of fiscal 2012. Sales are expected to materially match production for the nine months ending March 31 2012.

For the full 2012 fiscal year, Talison expects production and sales tonnages to be consistent with the nine months ended March 31, 2012, on an annualized basis.

During the second quarter, Talison negotiated with its customers a 15% price increase across its entire product range. The price increase applies to sales of chemical-grade lithium concentrate in the third and fourth quarter of fiscal 2012 and for technical grade lithium concentrate sales for the full 2012 calendar year.

SECOND QUARTER FINANCIAL RESULTS CONFERENCE CALL
Talison will host a conference call to discuss the financial results on Monday, February 13, 2012 at 8:30 a.m. (EST). The call is being webcast by Thomson Reuters and can be accessed at www.earnings.com or at Talison's website, www.talisonlithium.com.

The unaudited interim consolidated financial statements and Management's Discussion and Analysis of the financial condition and results of operations of Talison Lithium Limited as at and for the interim period ended December 31, 2011 are accessible at Talison's website, www.talisonlithium.com.

Teleconference call details are as follows:
North America: +1 (800) 299-8538
International: +1 (617) 786-2902
Participant Code: 27020177
Chairperson: Peter Oliver, Chief Executive Officer and Managing Director
Replay
Available from: February 13, 2012, 10:30 a.m. (EST)
Available to: February 20, 2012
Dial In: +1 (888) 286-8010
International: +1 (617) 801-6888
Passcode: 44937066

ABOUT TALISON
 
Talison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars (brine lakes and surrounding concessions) located in Region III, Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.

FINANCIAL STATEMENTS
INCOME STATEMENT Three Months Ended
December 31, 2011
(Unaudited)
Three Months Ended
December 31, 2010
(Unaudited)
Six Months Ended
December 31, 2011
(Unaudited)
Six Months Ended
December 31, 2010
(Unaudited)(1)
A$'000 A$'000 A$'000 A$'000
Sales revenue 22,686 32,810 48,565 53,882
Operating costs (14,097) (21,442) (30,691) (34,677)
Other income / (expenses) (3,202) (4,135) (6,361) (7,202)
EBITDA(3) 5,387 7,233 11,513 12,003(2)
Depreciation and amortization (725) (1,047) (1,413) (1,867)
Net financing income / (costs) 589 (1,186) 1,446 (5,045)
Net realized US$ hedging gain 975 677 3,023 637
Net realized foreign exchange gain / (loss) 581 5,746 1,012 9,195
Net fair value gain/(loss) on financial assets and liabilities 1,065 (3,093) (5,354) 2,974
Income tax (expense) / benefit (2,230) (3,033) (2,978) (6,726)
Net profit/(loss) for the period 5,642 5,297 7,249 11,171
Basic earnings per share (cents/share)(4) 5.2 5.6 6.7 15.1
Diluted earnings per share (cents/share)(4) 5.2 5.4 6.7 14.6
Basic weighted average number of shares 107,771,151 94,484,098 107,751,096 74,018,163
Notes:
(1) The financial results for the six months ended December 31, 2010 are comprised of the results of Talison for the period from August 12, 2010 to December 31, 2010 (i.e., post-Reorganization) and the carve-out results of the Greenbushes Lithium Operations for the period from July 1, 2010 to August 11, 2010 (i.e., pre-Reorganization). Readers are cautioned that the results for the period from July 1, 2010 to August 11, 2010 may not be reflective of the ongoing affairs of Talison.
(2) EBITDA for the six months ended December 31, 2010 included A$1.6 million in non-recurring Reorganization costs.
(3) EBITDA is a non IFRS financial measure. For a reconciliation of EBITDA to its IFRS compliant income statement, see "Non-IFRS Performance Measures".
(4) Basic and diluted earnings per share have been calculated based on the weighted average number of shares on issue. For the three and six months ended December 31, 2011, the weighted average number of shares includes both the outstanding ordinary shares of Talison adjusted to remove ordinary shares held by the Talison Long Term Incentive Plan Trust which is consolidated under IFRS, and the exchangeable shares of Talison Lithium Exchangeco Limited, an indirect wholly-owned subsidiary of Talison that are exchangeable (on a one-for-one basis) for ordinary shares of Talison. For the three and six months ended December 31, 2010, the weighted average number of shares includes the outstanding ordinary shares of Talison adjusted to remove ordinary shares held by the Talison Long Term Incentive Plan Trust which is consolidated under IFRS, the exchangeable shares of Talison Lithium Exchangeco Limited that are exchangeable (on a one-for-one basis) for ordinary shares of Talison, and the ordinary shares of Talison Minerals adjusted for the Talison Minerals share consolidation which occurred as part of the Reorganization.
STATEMENT OF FINANCIAL POSITION As at
December 31, 2011
(Unaudited)
A$'000
As at
June 30, 2011
(Audited)
A$'000
Assets
Cash and cash equivalents 84,287 102,605
Trade and other receivables 13,773 21,543
Inventories 19,874 11,182
Derivative financial instruments 4,410 10,205
Property, plant and equipment 127,078 95,215
Exploration and evaluation assets 59,467 61,714
Total assets 308,889 302,464
Liabilities
Trade and other payables 12,455 12,380
Interest-bearing liabilities 28,326 29,243
Tax payable 3,970 -
Provisions 14,724 14,668
Derivative financial instruments 160 -
Deferred tax liabilities 8,552 10,622
Total liabilities 68,187 66,913
Shareholders' equity 240,702 235,551
As at
December 31, 2011
(Unaudited)
A$'000
As at
June 30, 2011
(Audited)
A$'000
Outstanding number of shares
Ordinary shares of Talison 111,542,053 110,527,347
Exchangeable shares of Talison Lithium Exchangeco Limited(1) 528,465 1,494,239
Shares held in trust(2) (4,299,367) (4,299,367)
Total outstanding number of shares 107,771,151 107,722,219
Notes:
(1) The exchangeable shares of Talison Lithium Exchangeco Limited are exchangeable (on a one-for-one basis) for ordinary shares of Talison.
(2) On June 7, 2011, Talison Lithium established the Incentive Plan Trust. Talison Lithium issued 3,862,767 ordinary shares to the Incentive Plan Trust and the Incentive Plan Trust purchased 436,600 ordinary shares of Talison Lithium on-market.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.
Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the Financial Statements and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2011 dated September 23, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

Contact Information


Gary Dvorchak, CFA
+1 (310) 954-1123
gary.dvorchak@icrinc.com
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Thursday, February 9, 2012

Talison Lithium to build lithium carbonate plant

Talison Lithium also announces it has signed a Memorandum of Understanding with Mitsui

Perth, Western Australia, Thursday February 9, 2012

Location for Minerals Conversion Plant

Talison Lithium Limited (“Talison” or the “Company”) (TSX: TLH
| US: TLTHF) has selected the Kwinana Industrial Area in Western Australia as the location for its proposed plant to convert lithium minerals into lithium carbonate (“Minerals Conversion Plant”).
The Kwinana Industrial Area is located approximately 40km south of Perth and 200km north-east of the Greenbushes Lithium Operations. It is one of the largest dedicated industrial areas in Western Australia and comprises a range of industries including fabrication and construction facilities, power stations, waste water plants, chemical manufacturers and alumina, nickel and oil refineries.
Talison selected the Kwinana Industrial Area as its preferred location for the Minerals Conversion Plant due to the synergies between the lithium carbonate plant and the surrounding industries; the proximity to water, reagents and energy supply; access to skilled labour; potential customers for by-products located in the vicinity; and close location to Fremantle Port for container exports.
Talison is currently finalizing tenure arrangements for its preferred site in the Kwinana Industrial Area and anticipates commencing environmental and regulatory approval processes shortly thereafter. An investment decision on the project is expected by the end of calendar 2012 and Talison is targeting commissioning in 2015.


Location of the proposed Minerals Conversion Plant in the Kwinana Industrial Area

Talison and Mitsui sign Memorandum of Understanding
Talison and Mitsui & Co., Ltd (“Mitsui”), a leading Japanese trading firm with significant involvement in the lithium-ion battery market, have entered into a Memorandum of Understanding to discuss on a non-exclusive basis collaborative marketing and distribution opportunities in Japan for lithium carbonate produced by Talison at its Minerals Conversion Plant.
Japan is one of the world’s largest markets for lithium-ion batteries and lithium chemicals, and there are potential opportunities for Talison and Mitsui to work together to provide an additional secure supply of lithium chemicals to customers in this market. The Memorandum of Understanding provides a framework for Talison and Mitsui to discuss collaboration opportunities on a non-binding basis and is valid for an initial period of 12 months.

Financial Results Release February
Talison will release its financial results for the fiscal second quarter 2012 before market open on Monday, February 13, 2012.  An investor conference call will be held at 8:30 a.m. EST.  Peter Oliver, Chief Executive Officer and Managing Director, and Lorry Mignacca, Chief Financial Officer, will host the call.
Investors in North America interested in participating in the live call should dial +1 (800) 299 8538 and enter passcode: 27020177. Those calling from outside North America should dial +1 (617) 786-2902 and use the same passcode.  A telephone replay will be available approximately two hours after the call concludes through Monday, February 20, 2012 by dialing +1 (888) 286-8010 from North America, or +1 (617) 801-6888 from outside North America, and entering passcode: 44937066.
There will also be a simultaneous live webcast and presentation used during this call that will be available on the Company's website at www.talisonlithium.com.                                                                           
To view the entire press release please visit:
2012-01-25 Talison Lithium Ltd. Press Release
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Monday, December 5, 2011

Top producer Talison Lithium Concludes First Sales Contracts for 2012 with 15% Price Increase




Perth, Western Australia, December 5, 2011Talison Lithium Limited (“Talison” or the “Company”) (TSX: TLH | US: TLTHF) today announced that it has achieved 15% price increases for the first contracts concluded for calendar 2012 sales. The Company also provided an update on its Greenbushes Lithium Operations and proposed lithium minerals conversion plant.
Price Increases
Talison is currently engaging in discussions with its customers with regards to prices for calendar 2012 sales. A number of contracts have been concluded and price increases of 15% have been achieved for sales to customers in China, Europe, US and Japan across a range of lithium concentrate products.
The price increases reflect current lithium market dynamics and are consistent with Talison’s previously stated objective of pursuing prices that enable existing producers to justify the capital expenditure necessary to maintain a secure and growing supply of lithium in the future.  Talison is optimistic it will achieve similar price increases in the remaining sales contracts it is negotiating for calendar 2012. 

Greenbushes Stage 2 Expansion
The Stage 2 Expansion at the Greenbushes Lithium Operations continues to proceed on schedule and on budget.  Foundations for the new chemical-grade plant are substantially complete and installation of steel-work has commenced.
The Company continues to expect commissioning of the Stage 2 Expansion during Q4 FY2012.  Upon completion, the Stage 2 Expansion will more than double Talison’s current production capacity to approximately 740,000 tonnes per annum lithium concentrate (approximately 110,000 tonnes per annum lithium carbonate equivalent (“LCE”)).

Commencement of steel-work as part of the Stage 2 Expansion at the Greenbushes Lithium Operations.



Proposed Minerals Conversion Plant
Responding to growing global demand for an additional secure supply of lithium chemicals, particularly from electric vehicle battery manufacturers, Talison is aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate (“Minerals Conversion Plant”).
After a review of the status of the Minerals Conversion Plant yielded encouraging progress to date, the Talison Board approved starting the next phase of the project at a cost of A$3.7 million.
Commencing in early calendar 2012, the next phase of the project includes a detailed engineering study of a 20,000 tonnes per annum lithium carbonate plant located in Western Australia. Talison is targeting commissioning in FY2015 and anticipates making an investment decision on the project by the end of calendar 2012.
Discussions with potential customers for the Minerals Conversion Plant are continuing positively. Talison is currently focusing on customers located in the North Asia region and is receiving considerable encouragement to expedite development of the project.
 

Talison’s proposed Minerals Conversion Plant


 About Talison Lithium
Talison Lithium Ltd. (TSX: TLH | US: TLTHF) mines and processes lithium bearing mineral spodumene at Greenbushes near Perth, Western Australia. The company produces a range of lithium concentrates that are distributed to a well-established global customer base, including China.

The Greenbushes ore body is a highly mineralised zoned pegmatite with a strike length of more than 3km. The Greenbushes Lithium Operations Mineral Reserve is unique among known lithium deposits in that it contains approximately 50% spodumene.

The Greenbushes Lithium Operations have two processing plants located at the mining operations. One plant produces technical-grade lithium concentrates, the other produces chemical-grade lithium concentrate. In September 2010, Talison Lithium merged with Salares Lithium Inc which gave it exposure to prospective lithium brine projects in Chile.


 

TSX: TLH | US: TLTHF
http://www.talisonlithium.com/



Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.
Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the unaudited condensed consolidated interim financial statements of Talison and the related notes thereto as at September 30, 2011 and for the three months ended September 30, 2011 and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2011 dated September 23, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

Contact Information


ICR, LLC - Investor Relations
Gary T. Dvorchak, CFA
Senior Vice President
+1 (310) 954-1123
Gary.Dvorchak@icrinc.com

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