QX Resources secures options over prospective US lithium lands

Options secured for exposure to two more prospective lithium brine projects
Restructured terms over current Liberty Lithium Brine Project reduces cash commitments
Enables diversified exposure to expanding US battery industry where downstream processors are still seeking supply options

Special Report: QX Resources has secured options for more prospective US lithium brine territory and a restructured deal over the Liberty Lithium Brine Project in California.

Liberty Lithium owner IG Lithium has agreed to restructure terms over the project with QX Resources (ASX:QXR), which now has the option to acquire a 25% interest in IGL and reduce its cash payments from US$1.7m to $500k.

The pact also includes an option to acquire a 15% stake in IGL-related company IGX Minerals, the unlisted holder of two more lithium brine assets in Nevada and Utah.

QXR managing director Steve Promnitz said that through the deals, the company now has exposure to three large, prospective projects, reduced cash commitments and a diversified portfolio.

“The lithium brine projects are located in the US market where demand continues for critical minerals and where downstream processors are still seeking supply options,” Promnitz said.

IGL and IGX member Stephanie Ashton said the US companies were likewise pleased to strike the new arrangement.

“We recognize the valuable work that we have done together with QXR and are pleased to continue to consolidate and expand our joint efforts to find new critical supplies of upstream lithium brines for the rapidly expanding US battery industry,” Ashton said.

Both IGX and IGL are in lithium feedstock discussions with US developers and producers of battery-grade products, and boast what QXR considers to be excellent local teams and contractors to ensure the projects are advanced.

The next steps for the Liberty Lithium Project will now entail permitting for new drill sites, targeting the areas interpreted to intersect deep lithium brines in the centre of a basin.

QXR will continue a review of work conducted by IGX across its projects, which it says has so far pointed towards encouraging results in a favourable geological setting.

Lady Liberty’s Californian commodities

While California might sound a difficult place for resource companies to operate, QXR has taken its due work to ensure the local and county interest in developing battery mineral assets, as both state and federal governments support the US battery industry.

Nearby evaporative salt operations have been running for decades, and geophysical analysis has shown a worthy prize at Liberty Lithium in the form of a large basin over a kilometre deep with brine aquifers intersected at depth.

Work has shown a geological setting mirroring Albermarle operations across the border in Nevada and a kinship to the major brine projects of Argentina.

In the wake of a hard rock rush into the lithium lands of Australia and Canada, brine assets were put under the spotlight with Pilbara Minerals’ $560m push for Latin Resources.

And with the US seeking to advance its domestic production of critical commodities, having production within its borders could provide its own unique advantage. This is especially so given the US, in a bipartisan sense, is eager to build up its own battery supply chain due to combatting geopolitical concerns and vulnerabilities.

This article was developed in collaboration with QX Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.