$ LEXG. Lithium Exploration Group CEO Distributes April 2015 Newsletter.
PHOENIX, AZ / ACCESSWIRE / April 9, 2015 / Lithium Exploration Group Inc. (PINKSHEETS:LEXG), CEO Alex Walsh discusses ongoing business activity in his April newsletter.
Dear Shareholders:
I want to update you on our technology unit status, our disposal facilities, and our interest in acquiring oil and gas assets in this update letter.
TECHNOLOGY
We are still in a holding pattern with regards to the technology unit that is to be field tested for upgrading oil. Our P.O. was submitted three weeks ago to the manufacturer and, although the shaft kit is a relatively easy part to replace, it has to be made from scratch because the type of stainless steel that it was originally made with must match the rest of the pump.
The plant where it was made is in Austria, and our contact at the manufacturer quoted us 8 to 10 weeks (as of three weeks ago) but we expect to have it sooner. It could ship as early as next week or as late as the end of this month, but we will keep you posted immediately upon receiving word of the completion and shipment. We are having the parts air shipped to Spring, TX, where the pump will be reassembled and once again shipped to Canada for testing.
As I have stated before, we are fully confident in the commercialization of this technology for both water purification and oil treatment. It is now merely a matter of time.
DISPOSAL ASSETS
We are presently in the process of selling our interest in our disposal facilities in Canada to raise cash. Both of these facilities are fantastic future opportunities, given their licenses and their geographic placement, but unfortunately we are unable to support them with the capital expenditure required to bring them to their full potential. The main reason we are selling them is so that we do not have to raise any more dilutive capital to fund operations and testing of the technology.
The dilutive investments we have taken on over the past 12 months have had a direct impact on our stock value and have resulted in dilutive conversions to the company and shareholders. By raising cash with the sale of the disposal facilities, we will be able to self-fund operations and testing through the summer, allowing for the fantastic news that will allow our stock price to appreciate without the pressure of dilutive conversions.
OIL AND GAS ACQUISITION
As we announced last week, we are in the process of evaluating oil and gas assets and discussing financing options with different investment groups. The price of oil today presents a great buying opportunity for smaller oil and gas assets in Alberta. In general, we are looking to invest in companies that are saddled with debt, making their operations cash flow negative. We want to keep the current teams in place to manage the assets, but recap their existing debt with an investment of equity capital. The goal is to take advantage of today’s oil prices and to have a foothold on oil and gas production where, once tested, we can deploy the technology unit and increase the facilities operational profitability.
This contemplated investment will not be done with debt that is convertible into our company’s stock. We are discussing an investment coming in that would be only secured by the asset that will be purchased with some warrants to give the investor some participation in the upside of the investment itself.
I hope this provides a little insight on where we are today and what we are trying to get done over the next few months.
Sincerely,
Alex Walsh
CEO
Lithium Exploration Group
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