PHOENIX, AZ / ACCESSWIRE / August 14, 2017 / Lithium Exploration Group Inc. (OTC PINK: LEXG) CEO Alex Walsh updates shareholders on company activities.
Dear Shareholders,
I want to thank all of you for your emails and voicemails over the past few weeks. We have a lot going on right now and I want to take this opportunity to provide some clarity to your questions so I am going to tackle some topics of interest today and a few more tomorrow:
Debt Refinance:
Last week we announced that we had reached terms with the two major existing debt holders to reduce the discount on their convertible debt by 50%. This means that their debt will hold a 25% discount to market price for all debt going forward. Reducing this discount provides for substantially less dilution immediately, and should provide good stability for the company stock while we continue working on all of our commercial efforts.
As we were discussing the restructuring, all parties agreed that, as the oil project continues to ramp up and the SonCav technology gets closer to commercial operations, we will take further steps to reduce dilution thus providing for more predictability of our enterprise value and market cap.
Pennsylvania Project Judgement:
Last week we also filed a judgement here in Arizona against the two entities we are partnered with on an oil project in Pennsylvania. The judgement is for our entire investment of $250,000 and the expenses we have incurred as part of the litigation. We are planning to take steps to recoup the investment that we made so we can move in another direction.
You may recall that our funds were to be spent on drilling one well as part of a larger project. The additional funds to begin the project never arrived so the drilling never took place. We made multiple requests to have the funds returned and eventually were forced to take legal action, which has now been completed. It is unclear how this is going to play out but certainly look forward to having those funds returned or receiving some other remuneration that can make us whole.
Lithium Project / Partnership:
We were approached in January of last year by a group that is aggregating lithium technologies and patents with the goal of providing assistance for the entire lifecycle of lithium as it comes out of the ground and goes into a battery. They have completed the acquisition of their first set of ten battery related patents and have significant interest in the SonCav technology as part of their portfolio. The main reason for this interest is that this technology could be disruptive but also would provide an application for the mining and extraction of lithium rather than competing with their existing battery portfolio. We have reviewed the battery portfolio and believe that it is a very solid foundation from which they could grow.
We are the exclusive provider for the technology to the mining industry in Canada and are happy to work with them in that respect but they also will have to work with our partners at SonCav regarding licenses for lithium in other jurisdictions. Our initial discussions involve licensing payments and the opportunity to JV on their efforts in lithium because we are one of the longest lasting technology companies in the industry. We plan to formally engage in discussions again this month and try to come to a resolution on how to partner up going forward. I think that, if they are properly financed, we could find a way to build off of their foundation and it could be mutually beneficial to all parties.
Sincerely,
Alex Walsh
CEO
Lithium Exploration Group
About Lithium Exploration Group
Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused testing its SonCav Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is traded on the OTCPINK under the symbol LEXG. Website: www.lithiumexplorationgroup.com.
Safe Harbor Statement
This news release contains "forward-looking statements". Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact Info
Shanon Chilson
480-641-4790
[email protected]
SOURCE: Lithium Exploration Group