Lithium Exploration Group Inc (OTCMKTS:LEXG) is trading back at its sub penny stock lows after a big move as the Company affected a 1 for 20 reverse split of the stock. Everyone remembers LEXG for the spectacular run the stock made several years ago from pennies to $11.64 a share.
LEXG announced on October 28 that it is in discussions with a Texas-based company with a proprietary chemical additive that will assist in the oil treatment process. The chemical company has developed a proprietary blend of additives to treat paraffin and lighten the specific gravity of the oil. Lithium Exploration Group will ship samples of the oil treated at its Tero facility to Texas. A team will be heading there in a few weeks to assess the results of the tests and discuss this potential partnership.
Lithium Exploration Group Inc (OTCMKTS:LEXG) is all about Lithium, which is in a nutshell, a highly chemically reactive element not found on Earth in elemental form. It isn’t mined as lithium. But the commercial world uses the name of the element when talking about the array of lithium resources, supply and demand.
Lithium is the lightest metallic element. As a metal it has important though minor use as its numerous applications in refined mineral form and in a variety of chemical combinations are owed to its innate mineralogical, chemical, electrochemical, and physical properties. Lithium is mined as a silicate mineral or harvested from natural brines and then used in mineral form or converted into lithium chemicals or metal.
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Today the supply of lithium raw materials is dominated by a handful of producers in Chile, Argentina and Australia. New potential demand scenarios have created a rush on the part of junior mining companies and others, some partly supported by major automotive and electronics companies, to develop projects in traditional resource types as well as new ones. Today’s producers have also made clear their resources potential and capabilities for capacity increases.
The Company announced on October 23 that CEO Alex Walsh purchased 2,500,000 shares of common stock yesterday in the open market. By making the purchase he will be unable to sell any of his share holdings for a minimum of 6 months.
“Yesterday I asked all of the folks that have interest in our company to have patience as we get through the next few quarters and stated that I believe our company is undervalued right now. After discussing that with a few of our folks internally I decided to make my own purchase of LEXG stock to show that I back my statements with action,” commented CEO Alex Walsh.
Conclusion:LEXG is moving steadily downwards in recent trading. The stock made a big run back in March of this year when it moved from $0.05 to $0.20. Since this time last year LEXG OS has gone from 91 million shares out to 432 million shares.
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Currently drifting into sub penny land LEXG has fallen a long way and contines to move lower on dilution. The stock has a history of highly explosive moves and is the kind of stock that could heat up at any moment and go on a 2 or 3 day massive tear as it’s done several times in the past. We will be updating on LEXG when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with LEXG.
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Disclosure: we hold no position in LEXG either long or short and we have not been compensated for this article.