HENDERSON, Nev., April 23, 2012 /PRNewswire/ -- Lexington Energy Services Inc. (the "Company") (OTC:LXES.PK) reports that as per the agreement signed on April 19, 2012 with Maria Ines Moraga Latapiat of Santiago, Chile, it has an exclusive option to acquire 100% interest in a Minor Maritime Concession, issued by the Republic of Chile, Ministry of National Defense, located in a sector of the seabed in the area known as Bahia de Lota, Municipality of Lota, Province of Concepcion, 8th Region of Bio-Bio, Chile.
Under the terms of the option the Company will make payments totaling USD$408,000 over a three year period, incur exploration/development expenditures of $500,000 and upon exercise of the option, issue to Ms. Latapiat 5,000,000 shares of the Company's common stock. Ms. Latapiat will also retain a 3% Net Profits Interest from all revenue generated by the concession.
The Concession, which encompasses 660,000 square meters of sea floor to retrieve bituminous thermal coal in stratum as well as two hectares of industrial land, holds a current resource of 275,000 proven and 90,000 probable metric tones of recoverable bituminous thermal coal in zone 1, according to a geological report dated September 2011, and is believed to be open on all sides for expansion. The current trading price average of the coal is US$113/mt based on Australian thermal coal f.o.b. Newcastle/Port Kembla. Adjacent zones are believed to contain additional recoverable resources of similar grade coal. The Company plans to explore those zones as part of its ongoing exploration activities.
The Company has secured $100,000 interim financing which will provide funding for the initial phase of exploration, as required by the option agreement.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
For more information please contact Corporate Relations at 702-949-0812 or [email protected]
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995 - forward-looking statements concerning plans, objectives, goals, strategies, future events of performance and underlying assumptions and other statements which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and services demand and acceptance, changes in technology and in economic, political and regulatory conditions and to all of the risks generally associated with a company at Budget's stage of development. All such forward looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE Lexington Energy Services Inc.