Lithium Exploration Announces Receipt of Milestone Payment
Testing of Ultrasonic Generator Continues, 43-101 to Be Expanded
(firmenpresse) - SCOTTSDALE, AZ -- (Marketwire) -- 05/15/12 -- Lithium Exploration Group (OTCBB: LEXG) (OTCQB: LEXG) announces the receipt of the previously announced $1.5MM investment from Hagan Investment, Ltd. The catalyst for the investment into the company was the initial testing of the ultrasonic generator being built to assist in the development of the Valleyview Project in Alberta, Canada.
Multiple studies have been commissioned and are due to be completed for Phase II of the Valleyview Project development. These studies include an expanded 43-101 and bench scale program to test the processing techniques designed by the University of Alberta last year. An environmental consulting firm is being hired to provide an independent analysis of the testing taking place in Pennsylvania, recording the input and output performance of the ultrasonic generator with various types of brine. An oil and gas consultant in Calgary, Alberta has been engaged to assist in making decisions about the ideal location for the unit upon delivery to Alberta.
The most critical issue at this point is near-term revenue from using the technology while the mineral processing techniques are tested and a plant is built to produce marketable minerals like lithium carbonate and potash. If the testing continues to go well, this single unit could produce enough revenue to cover all of the company's overhead while the project is in its development phase.
"We realize that the testing of the technology unit is of critical interest to those who follow our company. We continue to be enthusiastic about the performance of the unit in its initial testing. The reason for this optimism is that the clearances in the proprietary parts of the generator can only be measured in microns (100 microns = 1 millimeter) and when the ultrasonic generator is operating there are 10,000 pounds of steel rotating around a single shaft with only microns separating the individual components. We have now been operating the unit almost daily for over a month and no design or mechanical issues have been detected," commented CEO Alex Walsh.
"However, we have had intermittent componentry malfunctions along the way, which are to be expected when running initial testing of this sort. Presently we are having challenges regulating the power to the 200 horsepower motor that operates the generator. The engineers are troubleshooting the issue but essentially the motor is utilizing more power than is required which sends the unit into auto-shut down mode to protect it from damage. The motor should be able to operate at 75% of its capacity when running the generator at optimal speed. Until this issue is resolved we will only be able to operate the unit at about 65% of its optimal speed," continued Walsh. "We do not view this as a material delay, but due to the importance of this testing on the direction of the company, we feel it is important to keep an open line of communication with our stakeholders. Later this month we will be establishing a CEO blog which will be a venue for you to communicate with us and for us to provide you with timely and relevant updates on all of our progress and plans."
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 property. Lithium Exploration Group is a fully reporting company traded on the OTCBB under the symbol LEXG. Website: . Lithium Exploration Group is also now on Facebook, LinkedIn and Twitter (at)LEXG_OTCBB.
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
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Datum: 15.05.2012 - 07:00 Uhr
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