Scottsdale, AZ- September 11, 2014 - InvestorsHub NewsWire
- Lithium Exploration Group Inc. (OTCQB:
LEXG) CEO Alex Walsh discusses ongoing business activity in his
September 2014 newsletter:
Dear Shareholders,
We have had a very busy summer with the order of an
oil-upgrading technology unit and we are preparing for its arrival
in Q4. We continue to manage the expansion of both of our active
disposal facilities in Alberta and to look at other opportunities
that fit in with our overall strategy.
I have fielded a number of calls in the past few weeks from
brokers and shareholders relating to stock price and the future of
the company. I do not control (nor do I really comment) on our
stock price. I can comment on our company and wholeheartedly say
that we have never been in a stronger position than we are
today.
We began as a technology company looking to develop a lithium
asset, and, through setbacks and delays, we have persevered. Our
technology has tested successfully, firing on all cylinders with
zero failures or setbacks. The original water unit is being
outfitted with components that will allow the superheated fluid to
flash off the water and release the suspended solids/impurities.
All of these components are not being invented -- rather they are
off-the-shelf parts that just need to be properly sized and put
together (I call it playing with Legos, but I’m not an engineer) to
ensure optimum performance. We have ordered a matching modified
pump to handle the testing for oil upgrading, which will be tested
in Alberta in Q4. The same manufacturer and machining group will be
building this unit and it is already in process in Houston. The
unit will plug in to our already existing operations at our
disposal facility and has many fewer moving parts than the water
unit, so it will be easier to test and monetize.
We have acquired interest in two disposal facilities in Alberta
through our wholly-owned subsidiary company, Alta Disposal. The
Alta Disposal Morinville facility is one of only a handful of
active Class 1a wells in the entire province, and, once we complete
our application process and expand the surface facility to meet
today’s requirements, we will literally be a leader in the space of
industrial waste disposal. Tero Oilfield Services (Wardlow) is one
of only 25 licensed Waste Management facilities in all of Alberta
and has been in operation for 17 years. It is in a mature market
with few competitors and is presently expanding its operations to
add additional services to its clientele and will see expanded
revenue and margins over the coming years.
To evaluate our company, you should separate the company into
“Technology” and “Disposal”:
“Technology” – This is a patented and
disruptive technology that has the potential to solve water and oil
treatment issues across a number of industries and we are in the
driver’s seat for all of these applications in Canada. I am not
going to talk about specific numbers or valuations until we have
data that compares present technologies and a pricing structure to
match the efficiency of the unit. I can assure you that research
has been done and a model has been built, but the final inputs are
incomplete. This could be a nice little distribution business
adding 5 – 10MM per year in EBITDA or it could be something that is
so impactful that we change the face of the Canadian oil and gas
and mining industries. Either way it is a good business to be a
part of.
“Disposal” – We have two gems in our
present portfolio. They are defensible and dynamic locations and
have solid future opportunity for expansion of both businesses.
There are start-up companies that have entered the space as public
companies that trade at over 40 times earnings and others that
trade at infinite earnings based on the growth prospects of their
assets. We have real revenue coming in from these businesses, which
are very stable and will help support our overall endeavors for
years to come.
As I have said in the past, these two businesses have synergies,
which is why they are part of our company. We have turned a
significant corner coming out of our last fiscal year and are
moving forward with all of our businesses aggressively. I am
confident that the road ahead is clear, and I have a tremendous
affection for our shareholders, who see how far we have come and
want to see this company grow.
I know who else is out there and I know what we have in our
arsenal. I will be aggressively connecting with analysts in major
markets in the 4th quarter to take a look at the body of
work we have built so that they can also preach the potential
opportunity we have in front of us.
Our market capitalization today is a joke compared to others
that play in the same space and don’t have any technology to bring
to the fore. We have endeavored to grow this like a technology
company and we stand by that strategy because that is where the
huge upside lies in the future of Lithium Exploration Group. I see
big things in our future and I hope that you do too. We will
continue to execute on our strategies and will continue to update
you all on our progress on all fronts.
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 on its Western Canada lithium assets,
testing its Ultrasonic Generator Technology and the acquisition of
oil and gas related assets in Western Canada. Lithium Exploration
Group is a fully reporting company traded on the OTCQB 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
Ten Associates, LLC
Tom Nelson
480-326-8577
info@lithiumexplorationgroup.com