LOI for Large Scale Western USA Lithium Brine Project
Perth, May 17, 2023 AEST (ABN Newswire) - QX Resources Ltd (ASX:QXR) has entered a non-binding letter of intent (LOI) for the right to acquire a controlling interest in a large, recently-consolidated lithium brine project - Liberty Lithium - in California, USA.
- QXR has entered a Letter of Intent (LOI) over a large recently consolidated lithium brine project - Liberty Lithium - in the western USA.
- Liberty Lithium covers more than 10,000 Ha (25,000 acres) of contiguous leases in a closed basin with a similar appearance to well known lithium brine projects in Argentina/Chile. Sampling at the project has returned up to 200 mg/L lithium in brine at surface and defined an anomaly extending over 10km.
- The LOI provides QXR with a 75-day exclusivity period to undertake due diligence and negotiate terms for a potential acquisition of 75% of the project.
- The US Federal government and the California State government are actively supporting battery minerals development projects for the US battery supply chain.
The Liberty Lithium project area covers more than 10,000 Ha (25,000 acres) of recently consolidated contiguous leases which cover a closed basin just inside the Californian border from Nevada USA. It bears similarities to well-known lithium brine projects in Argentina/Chile. Surface brine samples have returned up to 215 mg/L lithium in brine at surface within an anomaly extending up to 10km long over 2500Ha. Geophysical analysis shows a large basin over 1,000 metres deep, with geothermal fluids along a faulted margin with elevated lithium brine results.
This LOI provides QXR with a 75-day exclusivity period to conduct technical and legal due diligence and negotiate terms and structuring of an option agreement to acquire 75% of the Project from a private US company. A fee of US$50,000 will be paid for this exclusive LOI period, which would become a break fee if a transaction was not finalised.
QXR Managing Director, Stephen Promnitz, said: "QXR Management has undertaken a high-level review of the Liberty Lithium Project and considers it exciting, demanding detailed due diligence. A large enclosed deep basin with lithium brines in an arid area is a look-alike for South American brine projects. Projects like this could be amenable for direct lithium extraction (DLE) or evaporation for pre-concentration. End users are seeking battery raw materials supply from the continental USA and Liberty Lithium would be a great candidate. It's an attractive project in the right jurisdiction, and comes with a skilled team on the ground to operate it. I look forward to progressing due diligence and working with the vendors on potential deal terms and structure.
Next steps will comprise detailed due diligence including an extensive data review, together with legal structuring of the project and ongoing site visits by the QXR management team.
About QX Resources Ltd
QX Resources Limited (ASX:QXR) is focused on exploration and development of battery minerals, with hard rock lithium assets in a prime location of Western Australia (WA), and gold assets in Queensland. The aim is to connect end users (battery, cathode and car makers) with QXR, an experienced explorer/developer of battery minerals, with an expanding mineral exploration project portfolio and solid financial support.
Lithium portfolio: QXR's lithium strategy is centred around WA's prolific Pilbara province, where it has acquired a controlling interest in four projects through targeted M&A - all of which sit in strategic proximity to some of Australia's largest lithium deposits and mines. Across the Pilbara, QXR's regional lithium tenement package (both granted or under application) now spans more than 350 km2.
Gold portfolio: QXR is also developing two Central Queensland gold projects - Lucky Break and Belyando - through an earn-in agreement with Zamia Resources Pty Ltd. Both gold projects are strategically located within the Drummond Basin, a region that has a >6.5moz gold endowment.
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