04:05 PM EST, 11/24/2017 (MT Newswires) -- Pele Mountain (GEM.V) said on Friday Enirgi Group has walked away from a non-binding agreement that would see Pele market Enirgi's lithium-extraction technology in exchange for a controlling stake in the company.

Pele said privately held Enirgi's decision not to proceed with the deal reached in June came after a strategic review launched by a newly appointed board of directors.

The withdrawal leaves Pele searching for a new chief executive after Rob Scargill, who came from Enirgi, resigned. Martin Cooper, Pele's treasurer, will assume the role on an interim basis and will work on unwinding the company's affairs from Enirgi and convincing creditors to accept shares for money owed.

Pele is in talks with major creditors on a shares-for-debt proposal and has so far converted $1.15 million of debt into equity. It has also had $94,000 in debt forgiven.

Pele shares last traded June 2 on the TSX Venture Exchange, closing that day at $0.02