LITHIUM EXPLORATION GROUP DISTRIBUTES AUGUST 2017 UPDATE 1 OF 2
August 14 2017 - 8:15AM
InvestorsHub NewsWire
August 14, 2017 -- Phoenix, AZ / Lithium Exploration Group Inc.
(OTCPINK: 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
info@lithiumexplorationgroup.com