- QX Resources (QXR), formerly Hipo Resources, has finalised an earn-in agreement with Zamia Resources
- Under the terms of the agreement, the company will assume a 50 per cent ownership of Zamia through the issue of 40 million ordinary shares
- QXR can ultimately earn up to 90 per cent by spending $1.5 million on exploration
- Additionally, QX Resources announced it has terminated the Kamola Lithium joint venture
- In April 2018, the company entered an exclusive option with Crown Mining Sarl to earn a 60 per cent interest in three mining permits in the Democratic Republic of Congo
- Due to the challenges posed by the COVID-19 pandemic, QX Resources was attempting to renegotiate the terms of the joint venture
- However, the company has revealed it has notified Crown of its intention to terminate the agreement in accordance with its terms
- QX Resources has ended the day 6.67 per cent in the red with shares trading for 1.4 cents each
QX Resources (QXR), formerly Hipo Resources, has finalised an earn-in agreement with Zamia Resources.
Zamia Resources is a wholly-owned subsidiary of Zamia Metals which owns four exploration licenses in Central Queensland.
It also hosts two open pit historical gold mines, Belyando and Lucky Break, as well as multiple unexplored targets.
Under the terms of the agreement, the company will assume a 50 per cent ownership of Zamia through the issue of 40 million ordinary shares subject to 12-months escrow.
QXR can then increase to a 70 per cent ownership by spending $500,000 on exploration within six months from October 1.
Exploration activities began last week with the company already earning 20 per cent.
QX Resources can earn up to 90 per cent of Zamia by spending a further $1 million on exploration and project development.
“We are pleased to have completed the transaction with Zamia,” Executive Chairman Maurice Feilich said.
“Our technical team is now actively driving the project’s re-development with soil and rock chip sampling expected to be completed next week. Results will be reported shortly thereafter and progress updates from site are so far encouraging,” he added.
Termination of Kamola Lithium Project joint venture
Additionally, QX Resources announced it has terminated the Kamola Lithium joint venture.
In April 2018, the company entered an exclusive option with Crown Mining Sarl to earn a 60 per cent interest in three mining permits in the Democratic Republic of Congo (DRC).
The permits lie within the same geological and structural setting as AVZ Minerals’ (AVZ) Manono Project which is believed to be one of the world’s largest lithium-rich deposits.
Due to the challenges posed by the COVID-19 pandemic, QX Resources was attempting to renegotiate the terms of the joint venture.
However, the company has notified Crown of its intention to terminate the agreement in accordance with its terms.
QX Resources has ended the day 6.67 per cent in the red with shares trading for 1.4 cents each in a $6.639 million market cap.