HENDERSON, Nev., May 2, 2012 /PRNewswire/ --Lexington Energy Services Inc. (PINKSHEETS: LXES) (the "Company") reports that the South American rare earth and commodity mineral concessions currently under review, particularly in Chile, require the full time application of all corporate resources to fully evaluate the scope of the opportunities that these potential acquisitions represent. As a result, the Company will not be proceeding with its option to acquire an interest in various mineral leases located in the Long Canyon Gold Trend in East Central Nevada.
Lexington has agreed to provide the Nevada properties optionor 50,000 restricted shares in the capital of the Company in lieu of exercising the option as set out in the Agreement. The shares represent a good faith payment by Lexington in recognition of the optionor's extension of certain terms, as set out in the Agreement, so that the Company could pursue its due diligence of the Lota Bay Coal Project, and other South American concessions under review.
As previously reported, Lexington has entered into an Option Agreement (the "Agreement") to acquire the rights to recover a bituminous thermal coal resource that lies on the sea floor of Bahia Lota in Chile's Gulf of Arauco. The resource encompasses 275,000 proven tonnes of recoverable bituminous thermal coal with additional probable reserves of 90,000 tonnes in zone 1. Current price averaging of US$113/mt represents a potential recovery value of US$40,000,000. It should also be noted that the necessary infrastructure is in place on the site; grid power, water, sewage disposal, highway and rail access, as well as a ready labor force from the nearby city of Lota, population 52,000.
To facilitate the ongoing work program, an initial $100,000 interim convertible debenture financing has been arranged.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
Robert Chalmers
President, CEO
For more information please contact Corporate Relations at 702-949-0812 or info@lxeservices.com
Forward-looking Statement:
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.
