SCOTTSDALE, AZ--(Marketwired - Mar 5, 2014) - Lithium Exploration Group Inc. (OTCQB: LEXG) ("Lithium" or the "Company") announces today that, effective as of March 1, 2014, its wholly owned subsidiary, Alta Disposal Ltd., ("Alta") acquired 50% of the issued shares of Tero Oilfield Services Ltd. ("Tero") for a purchase price of $1,000,000 CDN. Tero is an oilfield services company located in Wardlow, Alberta. The purchase transaction includes an option for Alta to acquire an additional 25% of the issued shares of Tero for $500,000 CDN for a period of 12 months following closing of the transaction. Details of the transaction will be filed in a Form 8K in the coming days and will be found at www.sec.gov.
Tero offers full Class 1B liquid and solid oilfield waste handling. The nearest facility offering the same service is more than 75km away. The addressable market for Tero is about a 30km radius from the facility and there are over 5,000 active oil and gas wells in this natural-gas-heavy producing area. Many of the natural gas producers have additional suspended wells in the addressable market. Over the past few months, however, with gas prices consistently staying above $4.50/mcf, many of these wells are coming back into production which will greatly benefit Tero's business.
"We have been working with the owners of Tero since August 2013 and are excited to have finally completed the transaction. Our goal with this facility is to provide much needed back office support along with sales and marketing efforts, giving us an opportunity for greater revenue and profitability," commented CEO Alex Walsh. "We have a lot of irons in the fire right now and, as part of our effort to communicate effectively and efficiently with shareholders, I will be making public a monthly letter to shareholders for the foreseeable future. I expect to have one distributed by the end of this week."
About Alta Disposal
Alta Disposal Ltd. is a wholly owned subsidiary of Lithium and has corporate offices in Calgary, Alberta. Alta holds Lithium's interests in oilfield disposal facilities in Western Canada. More information about Alta can be found at www.altadisposal.com.
About Lithium Exploration Group
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, Lithium 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 fully reporting company trading on the OTCQB under the symbol LEXG and a Website: www.lithiumexplorationgroup.com.
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 testing of the ultrasonic technology.
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.