‘This is a large prize’: QX Resources raises $3m to drill a potential company maker at the Liberty lithium brine project USA
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QX Resources raised $3m to drill Liberty Lithium, a newly acquired lithium brine project in California with the same characteristics as Albemarle’s Silver Peak deposit.
QX Resources recently inked a deal to acquire 75% in the Liberty lithium brine project, one of the largest project areas in the US.
It is also analogous to Albemarle’s nearby Silver Peak deposit, currently the only significant lithium producer in the country.
Like Silver Peak, Liberty could be a large-scale, producing lithium brine asset.
It hosts an extensive lithium brine surface anomaly with elevated results up to 215mg/Li extending over 10km. Geophysical analysis suggests a large basin over 1,000m deep, indicating brine aquifer targets at depth.
QX Resources (ASX:QXR) managing director Steve Promnitz says this project was hotly pursued by other groups due to its similarity with Silver Peak and other major brine developments in Argentina.
“The vendors wanted QXR due to its past successful lithium brine expertise,” he says.
That experience comes from Promnitz himself, who grew Lake Resources (ASX:LKE) from the $9.5m minnow it was, into an advanced project developer with a focus on direct lithium extraction (DLE).
Professional and sophisticated investors have jumped on a $3m placement, subscribing for ~140million shares priced at 2.2c each, a 15% discount to the 30-day volume weighted average price of 2.6c.
Promnitz pointed out that despite the capital markets being tight at present, the investors included a US-based operator in the battery supply chain, adding weight to the potential of the Liberty lithium project.
Directors in the company have also highlighted their belief in Liberty by committing to subscribe for $128,700 worth of shares under the placement subject to shareholder approval.
The company intends to use the proceeds from the placement to fund drilling at the project to identify lithium bearing brine aquifers and carry out test work on extracted brines using direct extraction processes.
Placements funds will also be used to pay for sampling and geophysics over its hard rock lithium projects in the Pilbara.
“The Liberty lithium brine project is large-scale and in the right location, close to downstream supply chain participants which are integral to the energy transition,” Promnitz said.
“QXR is finalising contracts with drilling services companies with the aim to commence drilling of the Liberty lithium project in the coming weeks. This is a large prize with significant prospectivity.
“As well, we now have the added financial flexibility to ramp up exploration activities across our Pilbara lithium hard rock project which are also very exciting prospects, alongside other company’s recent successes.”
QX is planning to drill two permitted holes in the main part of the surface lithium anomaly from late October to December this year.
Should lithium brines be encountered, samples will be submitted for test-work with various DLE providers with vendor IG Lithium providing an experienced team to assist in the field work.
This article was developed in collaboration with QX Resources, a Stockhead advertiser at the time of publishing.