QX Resources (ASX: QXR) raising AU$3M to assist funding of Liberty Lithium Brine Project

Highlights

• QXR is raising ~AU$3 million via a private placement to fund the Liberty Lithium brine project in the USA.
• Firm commitments for the placement also include participation from a US-based battery supply chain operator.
• The at-the-market subscription agreement would provide standby equity capital valued at AU$3 million over the next two years.

QX Resources Limited (ASX: QXR) has received firm commitments for AU$3 million in a private placement to fund the US-based Liberty Lithium Brine Project. A US-based operator in the battery supply chain is one of the participants in the placement.

The company directors are also supporting the placement with commitments to subscribe for AU$128,700, subject to shareholder approval.

Moreover, the company has signed an at-the-market subscription agreement with Dolphin Corporate Investments, which provides QXR with up to AU$3 million of standby equity capital over the coming two years, at DCI’s discretion.

QXR is finalising contracts to conduct drilling at the project in the coming weeks to define potential lithium-bearing aquifers at depth.

Data source: Company update

Funds to rev up exploration at Liberty Lithium Brine project

The proceeds from the capital raising program will be primarily used to support funding of the Liberty Lithium Brine project, the US.  

Funds will be used:

• To conduct drilling at the Liberty Lithium Brine project.
• To undertake testwork on lithium brines by employing direct extraction process.
• To pay title maintenance fees and make option payments related to the project.
• To conduct geophysics and sampling program on hard rock lithium projects located in the Pilbara region.
• For copper-gold-moly exploration in Queensland.

Details of the placement

Under the placement, QXR plans to issue over 140.5 million new shares at AU$0.022 apiece issue price, representing a ~15% discount to the 30-day VWAP of A$0.026.

The placement is anticipated to be settled on 16 October 2023.

Shares jump

Triggered by the update, QXR’s share price jumped by 8.6% to trade at AU$0.025 apiece on 10 October 2023. The share price has gained ~25% in the last one month.