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Highlights
- QXR has renegotiated its option agreement for the Liberty Lithium Brine Project, lowering cash option payments from US$1.7 million to US$500,000.
- Under the restructured agreement, QXR gains the option to acquire a 25% stake in IG Lithium LLC by 30 June 2025.
- A new agreement with IGX Minerals grants QXR access to two additional lithium brine projects in Utah and Nevada, spanning 10,660 hectares.
- QXR shares jumped by nearly 17% on 26 September 2024.
QX Resources Limited (ASX:QXR) has renegotiated its option agreement with IG Lithium LLC for the Liberty Lithium Brine Project in the US. The restructured agreement significantly reduces QXR’s cash option payments and includes an option to expand its interest in two prospective lithium brine projects in the US.
Details of the renegotiated agreement
Under the original option agreement inked with IG Lithium in October 2023, QXR had the option to acquire 75% stake in IG Lithium, the holder of the Liberty Lithium Brine Project. Following the renegotiation, QXR now has the option to acquire a 25% stake in IG Lithium by 30 June 2025. The revised agreement also reduces QXR’s cash option payments to US$500,000 from US$1.7 million.
Expansion through IGX Minerals deal
QXR has secured an additional option agreement with IGX Minerals LLC, a related company of IG Lithium. The deal grants QXR the option to acquire a 15% stake in IGX for US$500,000 by 30 June 2025, and provides access to two prospective lithium brine projects located in Utah and Nevada, spanning 10,660 hectares.
Both IG Lithium and IGX are backed by a local team of US-based contractors and exploration professionals. Moreover, both companies are pursuing partnerships with U.S. developers and producers of battery-grade lithium to potentially supply future lithium brine feedstock.
Future plans
Looking ahead, QXR is focused on securing permits for new drill sites within the project, particularly in areas expected to yield deep lithium brines in the basin’s centre, near previous drilling conducted by QXR.
Moreover, a review of the work undertaken by IGX on its project is currently in progress, with early results showing encouraging findings in favourable geological environments.
QXR shares jump
Triggered by the update, QXR share price surged 16.67% to AU$0.007 apiece at the time of writing on 26 September 2024.
