QX Resources (ASX:QXR) surges 33.25% on major investment from Suzhou TA&A

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QX Resources (ASX:QXR) surges 33.25% on major investment from Suzhou TA&A

QX Resources (ASX:QXR) surges 33.25% on major investment from Suzhou TA&A
Image source: © Fambros | Megapixl.com

Highlights

  • QX has secured a firm commitment worth AU$2.85 million from Suzhou TA&A.
  • QX and Suzhou T&A have executed a binding MOU to explore and operate the company’s lithium projects.
  • Shares of QXR closed up an impressive ~33.25% in response to the news of the strategic placement.

Shares of QX Resources Limited (ASX:QXR) surged 33.25% after the company announced that it had secured a firm commitment from Shenzhen-listed Suzhou TA&A Ultra Clean Technology Co Ltd to raise AU$2.85 million at a substantial premium to the company’s last trading price.

The new investor will be issued 75,000,000 new fully paid ordinary shares at an issue price of AU$0.038 a share, under the Company’s available capacity as per the ASX listing rules 7.1 and 7.1A. The Placement shares are proposed to be issued on or around 11 March 2022.

Must Read: QX Resources’ (ASX:QXR) shares zoom 5% on expansion of Pilbara lithium portfolio

Suzhou TA&A holds substantial investments in the lithium sector and is listed on the Shenzhen Stock Exchange under the ticker 300390, with a market capitalisation of AU$11.14 billion. With 75% interest in lithium hydroxide producer Yibin Tianyi, Suzhou is its largest shareholder, along with Contemporary Amperex Technology (CATL), which is a leading Chinese EV battery manufacturer. Yibin Tianyi aims to emerge as one of the world’s largest lithium hydroxide producers.

Read Here: QX Resources (ASX:QXR) exercises option to acquire Turner River lithium project

Furthermore, QX Resources and Suzhou have executed a binding Memorandum of Understanding (MOU) with the following key terms –

  • Conclusion of the equity placement to Suzhou TA&A Ultra Clean Technology Co Ltd
  • The involved parties will discuss and finalise a collaboration agreement for the future exploration and exploitation of QXR’s lithium projects in WA.
  • QXR will grant Suzhou T&A, a first right to turn down any future lithium offtake from the lithium exploration projects.

Maurice Feilich, Chairman of QX Resources, expressed pleasure and welcomed Suzhou TA&A as a strategic partner and cornerstone investor of QX Resources.  He added -

“This is an excellent development for our company, a strong vote of confidence in our lithium exploration projects, and it brings an experienced and large lithium sector investor onto our register. As well, their desire to collaborate with us on project exploration, development and secure future offtake for any lithium we discover on our projects delivers huge value at multiple levels to QXR.”

“We now have the added financial flexibility to fast-track and scale up exploration activities in Western Australia as well as continuing to invest in ongoing trenching and drilling of our Drummond Basin gold assets where we are achieving excellent results.”

QX looks forward to sharing its exploration plans with shareholders for its premium lithium and gold project in the coming days.

Suggested Read: QX Resources Limited (ASX:QXR) continues its buying spree, to acquire Turner River Lithium project in Pilbara

Share Performance

Since the beginning of 2022, QXR shares have surged over ~55%, delivering strong gains to its shareholders. In the recent months, QXR has focused on expanding its lithium exploration portfolio and recording new lithium and rare earth elements (REE) from its Turner River lithium project.

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