SCOTTSDALE, AZ — (Marketwired) — 07/18/13 — Lithium Exploration Group Inc. (OTCQB: LEXG) CEO Alex Walsh announced today that he is in discussions with financing partners to acquire additional waste disposal facilities in Alberta following the recent LOI to acquire the company–s first Class 1A disposal well located outside of Edmonton, Alberta.
LEXG–s entry into the waste disposal business in Canada includes the go-forward strategy to become a smaller institutional acquirer of regional facilities. Sharing the sales and administrative expenses between smaller facility owners will both increase their profitability and provide better overall service than the larger competition can offer.
Liquid and solid waste is produced in the exploration, production and refining aspects of the oil and gas industry. This reality provides opportunities for service companies who are in the business of disposing of the unwanted byproducts generated by the industry. Canada is the 3rd largest global producer of oil and gas, the largest importer to the United States, and 80% of this production takes place in Alberta.
A number of opportunities exist to acquire and partner with smaller facility operators. Sharing administrative and sales functions from one centralized location can increase the revenue opportunity and margins for smaller disposal facilities.
The AER (Alberta Energy Regulator) expects that the number of new oil and natural gas wells will gradually increase over time.
Thousands of gas wells are still suspended following the market downturn in 08-09 and, as these wells come back into production with the advent of higher natural gas prices, the disposal industry demand will pick up significantly.
The multi-billion dollar disposal market in Western Canada is very fragmented with a handful of larger companies able to dominate smaller operators with fewer resources.
The UCG (Ultrasonic Cavitation Generator) is designed to remove suspended solids from waste water streams, leaving fresh water as the output. Once the technology is ready to be deployed in the field, a unit can be located at each of the LEXG-owned disposal facilities as a way to supply necessary fresh water to rural municipalities, farmers, and oil and gas operators.
The company will be exploring the acquisition of a standalone disposal facility near the Valleyview and Fox Creek lithium assets. This site will be designated to initiate production of lithium and other valuable minerals.
“We have been planning this strategy to go hand-in-hand with our technology investment and lithium exploration for some time,” commented CEO Alex Walsh. “I love working in Western Canada and I think there is a great chance here for investment in strategic partnerships and exponential growth in the months and years to come.”
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 on its Western Canada lithium assets, testing its Ultrasonic Generator Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is a fully reporting company traded on the OTCQB under the symbol LEXG. Website: .
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, including but not limited to the completion, testing, transportation, and final installation of the unit.
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.
Shanon Chilson
480-641-4790