Quick research says that lithium and graphite plus cobalt are the mined ingredients for the batteries required for cars of this type. Expected boom market on next half decade. Most graphite currently mined in China.
So TON is aiming to be a mined battery input supplier. Cook has been hunting for a graphite miner to hook up the lithium with. He does not want to take WGX away from being a specialist gold miner. It scares off the pure gold punters and there are a lot of them.
This is a way of getting some value to shareholders of whom he is a substantial one, for WGX lithium prospects which look quite good. Its a bit like passing the ball on a football field. Flicking the ball out to the wing might be a better prospect for a score when the forwards of the other side are bearing down on you, and you have little chance of scoring yourself without substantial battering.
WGX Price at posting:
$1.65 Sentiment: Hold Disclosure: Held
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