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Friday, June 18, 2021

Lithium Exploration Group Inc (OTCMKTS:LEXG) Comes back to Life

Lithium Exploration Group Inc (OTCMKTS:LEXG) has seen a huge boost after the Company announced its partners at White Top Oil and Gas have reached a verbal agreement on a $14M investment that would fund the final acquisition of the field in Louisiana, and fund the first six drilling targets. This proposed investment is from a New York-based private equity firm and is being made directly into White Top Oil and Gas and thus will not be dilutive to LEXG shareholders.

LEXG is trading back under its original ticker since trading as LEXGD for 20 days following a 1 for 200 reverse stock split on September 30 of last year. LEXG made history several years back when the stock ran from a dime to $11.64 a share.

Lithium Exploration Group Inc (OTCMKTS:LEXG) 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 is 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.

On November 2 CEO Alex Walsh issued a letter to shareholders stating the Company has been busy recently completing their annual audit and are focused on the testing and deployment of the ultrasonic technology units, but have several other business initiatives that we hope to be able to tether into that business in the future. I hope this update gives you a good idea of our current situation, and more information on all fronts will be released as it becomes available.

The oil and water units have been waiting for the past few months for upgraded parts to arrive from Europe. Unfortunately these parts took a lot longer to get from the manufacturer than initially expected, but I am happy to announce that they have arrived in Houston at the facility, where both units are located, and the reassembly is underway. We are now able to continue with our planning and schedules to get the oil unit ready for field-testing.

SonCav also have recently made a change in their management team, inserting a new CEO to ensure that things stay on track with all of their business initiatives. We have been working collaboratively with the new management on testing strategies for both the oil and water units. We are extremely happy with the way that their team is set up, and have a stronger relationship with them now than we have in years.

On June 15 LEXG announced its partners at White Top Oil and Gas have reached a verbal agreement on a $14M investment that would fund the final acquisition of the field in Louisiana, and fund the first six drilling targets. This proposed investment is from a New York-based private equity firm and is being made directly into White Top Oil and Gas and thus will not be dilutive to LEXG shareholders.

“I was on a call with our partners at White Top and the investor yesterday afternoon and, with only a few small considerations in the final documentation, the goal is to close the transaction in July,” commented CEO Alex Walsh. “We are not directly involved in this transaction but we benefit, because, as soon as the acquisition is finalized, we begin to collect checks on our 3% overriding royalty. As they drill additional wells that royalty stream goes up. The recent discovery of the overhang has significantly expedited the funding process and we are all excited to move this project forward.”

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LEXG is making a big move up after the Company announced its partners at White Top Oil and Gas have reached a verbal agreement on a $14M investment that would fund the final acquisition of the field in Louisiana, and fund the first six drilling targets. This proposed investment is from a New York-based private equity firm and is being made directly into White Top Oil and Gas and thus will not be dilutive to LEXG shareholders. LEXG moves quickly and has a long history of spectacular moves so it’s no wonder it quickly attracts a fast growing shareholder base every time it heats up. 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.

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