Toronto, Ontario--(Newsfile Corp. - October 19, 2021) - Lithium Energi Exploration Inc. (TSXV: LEXI) (the "Company" or "LEXI") is pleased to announce that it has entered into a joint venture agreement ("JV Agreement") with Global Oil Management Group, LLC ("GOMG"), an international resource development company controlled by prominent investor, Harry Sargeant, III. GOMG will provide capital for the exploration and development of approximately 20% (the "JV Concessions") out of a total 72,000 hectares of prospective lithium mining claims owned by LEXI in the province of Catamarca, Argentina.
The JV Agreement requires the creation of a new Argentine company (the "JV Company") that will hold the JV Concessions. GOMG will be the majority owner of up to 80% of the JV Company and LEXI will own a "non-dilutable minority interest" of no less than 20% of the JV Company. At its discretion, LEXI will have the option to convert its equity holdings in the JV Company into a 6% gross royalty on future production from the JV Concessions. The JV Agreement requires GOMG to provide up to USD $3,000,000 in funding to cover exploration costs on the JV Concessions and to develop a full NI 43-101 resource estimate within three years of the execution of the JV Agreement and pay LEXI a USD $500,000 cash fee upon executing the JV Agreement. In addition to the exploration funding, subject to economic suitability, GOMG will be responsible, at its discretion, to provide all funding to construct and operate a lithium extraction facility to exploit the lithium-bearing brine located under the JV Concessions.
LEXI's CEO, Steven Howard, expressed that, "After downturns in the lithium market in 2019 and the effects of gripping restrictions brought on by the 2020 pandemic, the market has now reversed. 2021 has witnessed LCE prices increase to all-time highs and as auto manufacturers accelerate a rapid transition to electric vehicles, investment in the sector is also increasing. This JV Agreement is an endorsement of interest in the value of LEXI's assets. Mr. Sargeant's group has historically demonstrated its ability to successfully deploy substantial capital to develop large resource assets in challenging locales - a perfect profile for partnering with LEXI."
GOMG's Chairman, Harry Sargeant, remarked that, "For the lithium sector, it has never been more clear - electric vehicles and storage facilities are the future and there's nothing more well-suited to meet these changes than lithium. We believe the LEXI team has done a remarkable job assembling a world class package of assets. This JV provides us with the opportunity to develop these properties all the way to production. With guidance from the GOMG team and continued input from LEXI, we see a bright future with the potential of achieving lithium production over a relatively short period with finished products entering the market at just the right time to meet the growing demand."
About Global Oil Management Group, LLC
Global Oil Management Group, LLC is a resource development holding company controlled by Harry Sargeant, III. Mr. Sargeant is a billionaire investor focused principally in the diversified energy and shipping industries. GOMG is one of the parent companies under which he operates an expansive, multibillion-dollar conglomerate of private global enterprises consisting of aviation companies, oil refineries, oil trading operations, alternative fuels development, alternative energy development, and oil and asphalt shipping.
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