IG Lithium and QX Resources Restructure Agreement to Boost Lithium Project

3 min read | September 25, 2024 11:50 PM PDT | By Team Kalkine Media

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IG Lithium and QX Resources Restructure Agreement to Boost Lithium Project — Image source: Shutterstock

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Highlights

IG Lithium restructures agreement with QX Resources, reducing cash payments and granting an option for a 25% interest in IGL.

QX Resources expands its portfolio with exposure to three lithium projects and a 15% stake in IGX Minerals.

The Liberty Lithium Project aims to advance its operations amid strong U.S. demand for critical minerals.

IG Lithium, owner of the Liberty Lithium Project, has restructured its agreement with QX Resources (ASX:QXR). Under the new terms, QX Resources has the option to acquire a 25% interest in IG Lithium while significantly reducing its cash obligations from US$1.7 million to just $500,000. This new pact also includes an option for QX Resources to acquire a 15% stake in IGX Minerals, which is the unlisted entity that holds additional lithium brine assets in Nevada and Utah.

QX Resources’ Managing Director, Steve Promnitz, highlighted the strategic advantages of this deal, noting that it provides the company with exposure to three large, prospective projects while also lowering cash commitments. He remarked, “The lithium brine projects are located in the U.S. market where demand continues for critical minerals, and where downstream processors are still seeking supply options.”

Stephanie Ashton, a member of IG Lithium and IGX, expressed satisfaction with the new arrangement, emphasizing the collaborative efforts to secure critical supplies of upstream lithium brines for the rapidly expanding U.S. battery industry. Both companies are engaged in discussions related to lithium feedstock with U.S. developers and producers, benefiting from what QX Resources considers an exceptional local team and robust contractor support.

Next Steps for the Liberty Lithium Project

The Liberty Lithium Project is now set to progress with permitting for new drill sites aimed at areas believed to intersect with deep lithium brines located at the basin’s center. QX Resources is actively reviewing previous work conducted by IGX, which has yielded encouraging results in a favorable geological environment.

Exploring Opportunities in California

Despite perceptions of California being a challenging environment for resource companies, QX Resources has diligently worked to engage local and county interests in developing battery mineral assets. With state and federal governments supporting the U.S. battery industry, the potential for success is significant.

Geophysical analyses have revealed a promising geological setting at Liberty Lithium, which boasts a large basin more than a kilometer deep, intersected by brine aquifers. This environment mirrors that of Albemarle Corporation’s operations in Nevada and shares similarities with major brine projects in Argentina.

In light of the increasing focus on domestic lithium production, especially amid geopolitical concerns, the U.S. is keen to build its battery supply chain. With a local production capability, companies like QX Resources are poised to contribute to this essential industry while leveraging the advantages offered by their strategic projects.

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