SCOTTSDALE, Ariz., May 22, 2013 /PRNewswire/ -- Lithium Exploration Group Inc. (OTCQB: LEXG) today releases an update to shareholders on the current acquisition strategy. Since the fall of 2012, the company has been seeking to acquire oil and gas production operations in Alberta to complement its lithium exploration activity. The company targeted lithium-bearing brine in Alberta which comes to the surface as waste water during oil and gas production. Owning the hydrocarbon production as well as producing the minerals from the waste water allows the company to vertically integrate production of both resources and to increase overall profitability. The company is presently evaluating the acquisition of a water disposal facility and an oil and gas operator to serve as the foundation for other potential investment in Alberta. This strategy is a familiar one in the minerals and energy space. On Monday, Freeport McMoRan announced its approved merger with Plains Exploration and Production in a $6.5 billion transaction boosting its exposure to oil and gas to offset exposure to metal prices and increasing energy costs. CEO Alex Walsh travels to Calgary today in hopes of finalizing the terms of these transactions.
"The strategy to buy existing production to dovetail with our lithium exploration efforts makes sense. We will have the ability to pick and choose acquisition targets, while putting positive revenue on our books to fund exploration efforts and project development. The Alberta government has recently changed its LMR (Liability Management Rating) calculation which is putting pressure on smaller operators all over the province, so we feel that this is a great time to begin making acquisitions," commented CEO Alex Walsh. "While LEXG is operating on a much smaller scale, we are endeavoring to provide the same diversification to our shareholders as some of the largest mining companies and are excited about what the future will bring for our shareholders."
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: www.lithiumexplorationgroup.com. Lithium Exploration Group is also on Facebook, LinkedIn and Twitter @LEXG_OTCBB.
Safe Harbor Statement
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.
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SOURCE Lithium Exploration Group, Inc.