MOMO'S BREAKOUT BOARD

[ctine2020]

FLNTF is going to be a monster. See below:

LEXG was originally established in 2006 as Mariposa Resources, filings show, which billed itself as an “exploration stage company to be engaged in the search for mineral deposits or reserves.” Over the course of the next few years, Mariposa did a little exploration and obtained an option to acquire an interest in some claims in the Clinton Mining District of British Columbia. For the most part, however, Mariposa was basically just a public shell.

Late last year, Mariposa suddenly reinvented itself. On Nov. 17, it merged with Lithium Exploration Group – a brand-new company incorporated that same day – and began trading under its current name and symbol a few weeks later.

Meanwhile, on the same day as that merger, a Canadian by the name of Guy Robineau also incorporated a brand-new company called Lithium Exploration VIII. LEXG struck a deal with that new outfit, which would provide the company with one of its core assets, one month later. Specifically, corporate filings reveal, LEXG acquired an option to purchase “certain mineral permits” to some lithium mines in Canada from the second similarly named company.

Lithium Exploration VIII had just purchased that option itself from a Vancouver company known as First Lithium Resources (OTC: FLNTF.PK) a couple of months earlier. Although LEXG has yet to supply that option agreement in its corporate filings, First Lithium has disclosed enough information in a past quarterly report to offer some clues about the value of those assets.

First Lithium sold that option for an upfront cash payment of $90,000 and the promise of additional payments every year – except this one – through 2014. In addition, it mandated that the new owner keep making “such property payments as may be required to maintain the mineral permits in good standing.”

First Lithium owned a total of 41 permits granting it access to lithium mines collectively known as the “Valleyview properties” before it negotiated that deal. The company held onto all but five of those, which represent those that LEXG now controls.

If either company scores big on Valleyview’s lithium, logic suggests, First Lithium – not LEXG – stands the far better chance. It holds eight times as many permits as LEXG does, but its stock (with a similar share count) trades at a fraction of the price.