Black Hawk Exploration (OTC BB: BHWX) Third Quarter Corporate Update
FOX ISLAND, Wash., Oct. 27 /PRNewswire-FirstCall/ — Black Hawk Exploration, Inc. (OTC Bulletin Board: BHWX) (“Black Hawk”) Releases 3rd Quarter Managements Report and significant activities over the 90 day period. The management team, headed by Kevin M. Murphy is pleased to announce to its Black Hawk Shareholders, Friends and the Market a recap of our last quarter and significant milestones.
October 27th, 2009 Shareholder Address and Corporate Update.
From the Desk of
Kevin M. Murphy
CEO / Director
In the last 100 days Black Hawk has announced its change of management team who are committed to the growth of Black Hawk and adding shareholder value. On August 2nd , Black Hawk launched a diversified energy and metals exploration program focused on identifying and exploring strategic high value properties and developing new prospective projects globally. Black Hawk’s plan included establishing wholly owned corporate identities in multiple strategic minerals, high value commodities, and rare earth projects. The first action by Black Hawk on August 11th was the formation of Blue Lithium Energy (“Blue Lithium”) a wholly owned Nevada subsidiary. Blue Lithium was formed to initially acquire, explore and develop a portfolio of strategic lithium properties in the United States and Canada with plans for future global expansion taking advantage of the opportunities lithium afforded the company. Management believed the global demand for lithium would continue to steadily increase and coincide with the aggressive program of value added property acquisition, project generation, asset diversity and building Shareholder value which the corporate officers had set for the company’s goals.
On September 28th, 2009 Black Hawk announced in a Press Release it had officially launched a “Diversified Energy and Metals Exploration Program” through its subsidiary Blue Lithium. Blue Lithium was capitalized to initially acquire, explore and develop a portfolio of strategic lithium properties in the United States and Canada.
On September 30th, 2009 Black Hawk announced its Clayton Valley, Nevada acquisition. Black Hawk’s 1,120 acre site is located in the lithium rich Clayton Valley which is the home of the largest lithium brine production facility in the U.S. The Chemetall Foote Minerals facility has produced in excess of 50 million Kg of lithium to date and is scaled to produce 1.2 million Kg a year. The American Institute of Mining estimates the mineral resource of the Clayton Valley to be 750 million Kg of lithium. The lithium brine deposits are located at depths of a few hundred meters and can be extracted in an environmentally friendly manner.
“…Our timing is perfect. As the international demand for battery-powered devices steadily increases, the Global demand for our potential lithium production will focus the investment communities spotlight on Black Hawk and its Clayton Valley holdings. The Chemetall Foote Minerals facility at their Clayton Valley Silver Peak Mine, located in close proximity to our Blue Lithium Clayton Valley holdings, has been continually producing lithium utilizing brines from shallow 300 ft to 800 ft wells for almost 45 years (1965). We believe the global demand for lithium will continue to steadily increase and drive the growth of Black Hawk and its wholly owned Blue Lithium division,” stated Kevin M. Murphy, CEO of Black Hawk and Blue Lithium on September 30th, 2009.
According to the U.S. Geological Survey the overall demand for lithium was growing at a rate of 4-5% per year and the automotive market alone is projected to reach $337 million by 2012 and quadruple from those numbers to $1.6 billion by 2015. Lithium destined for battery usage was projected to increase at a rate of 20% per year (Ober / USGS, 2007). The next 3 years, according to USGS, state that the market for rechargeable lithium batteries will grow to $6 billion annually.
“Lithium is a part of Black Hawks future” Kevin M. Murphy
On October 19th, 2009 Black Hawk announced that it has entered into an equity financing agreement for up to $1,000,000 from private investors. Our Clayton Valley claims and the Global demand for its potential lithium production had focused the investment communities spotlight on Black Hawk and future growth.
The signing of this equity financing agreement will allow us to fund the implementation of our operations and acquisitions strategy. In light of this new funding commitment all current acquisitions and projects under consideration were put on hold to be reviewed and prioritized to maximize future growth. It was decided that the first priority of Blue Lithium is to be its exploration program. Black Hawk expects to have additional information available for its shareholders regarding the recommendations of our Geologist, A.L.(Buster) Hunsaker by the end of October.
About Black Hawk Exploration Inc.:
Black Hawk is a diversified metals and energy exploration company with its current focus on lithium exploration through its wholly owned subsidiary Blue Lithium. Black Hawk is committed to an aggressive program of value added property acquisition, project generation, asset diversity and building Shareholder value.
“Safe Harbor” Statement: Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company’s expectations with regard to the future impact on the company’s results from new products in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995.
Certain oral statements made by management from time to time and certain statements contained in press releases and periodic reports issued by Black Hawk (the “Company”), as well as those contained herein, that are not historical facts are “forward-looking statements” within the meaning of Section 21E of the Securities and Exchange Act of 1934 and, because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.
SOURCE Black Hawk Exploration Inc.