Highlights
- QX Resources has signed a binding agreement to farm out a 75% interest in the iron ore rights at the Western Shaw Project.
- The purchasers can earn a 75% stake by committing AUD 1 million in exploration within 12 months of executing the agreement.
- QX Resources will retain a 25% free-carried interest and is entitled to royalty benefits from future production.
- The agreement includes a royalty of AUD 0.70 per WMT on the first 20 million tonnes of iron ore produced.
- Exploration results of up to 58.5% Fe highlights the project's high-grade potential.
QX Resources Limited (ASX:QXR) has announced a key development in its Western Australian exploration portfolio. The company has signed a binding term sheet with Nightrise Nominees Pty Ltd and Kalkam Pty Ltd for the proposed farm-out of a 75% interest in the iron ore rights at its Western Shaw Project, located in the Pilbara region. The project includes exploration licences E45/4960 and E45/6107.
Under the agreement, the purchasers (Nightrise Nominees Pty Ltd and Kalkam Pty Ltd) have been granted exclusive rights to acquire an unencumbered 75% interest in the project’s iron ore rights, subject to meeting defined exploration milestones.
Key Terms of the Agreement:
- Exploration Commitment: The purchasers are required to undertake an exploration program with a minimum expenditure of AUD 1 million within 12 months of signing of the agreement, including at least AUD 300,000 to be spent within the first six months.
- Joint Venture Formation: Upon successful completion of the exploration program, an unincorporated joint venture will be established. The purchasers will act as the managing partner.
- Free-Carried Interest: The purchasers will free-carry QXR’s 25% interest in the joint venture through to a decision to mine.
- Royalty Structure: QX Resources will receive a royalty of AUD 0.70 per wet metric tonne (WMT) on the first 20 million WMT of iron ore extracted. Beyond this, the royalty will reduce to AUD 0.05 per WMT.
Previous exploration by QX Resources at the Western Shaw Project has highlighted its potential, with rock chip samples returning assays of up to 58.5% Fe across a 4km stretch of Banded Iron Formation (BIF).
QXR shares were trading at AUD 0.004 per share on 6 June 2025.