It is reported that POSCO looks to invest USD 5 million in Pan American Lithium Corporation, formerly Etna Resources Inc; in keeping with POSCO CEO Mr Joon yang Chung saying that the steel producer would double investments in non ferrous metals in 2010.

Mr Joon yang Chung said that a letter of understanding relating to a magnesium refinery business to be built in Gangwon Province South Korea. He added that "POSCO will be aggressively pursuing projects and future materials like lithium as the new growth engines for the next generation of the company."

POSCO said that it would double spending in 2010. POSCO will spend KRW 10 trillion this year on expanding its facilities and on acquisitions.

Etna Resources changed its name to Pan American Lithium Corporation, announcing terms of a USD 5 million Letter of Understanding with POSCO at the open of trading in Toronto.

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. A total annual recoverable minerals is estimated at between USD 450 to USD 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.

(Sourced from www.axcessnews.com)