Lexington Energy Services Inc reports that as per the agreement signed on April
19th 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 USD 113 per tonne based on Australian thermal coal fob. 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.
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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 USD 113 per tonne based on Australian thermal coal fob. 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.
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