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QX Resources (ASX:QXR) reaches 70pc ownership of Zamia Resources

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ASX:QXR      MCAP $13.32M
17 June 2021 14:40 (AEST)

QX Resources (QXR) has reached a 70 per cent ownership in Zamia Resources under an earn-in agreement.

Zamia Resources is a wholly owned subsidiary of ASX-lister Zamia Metals (ZGM) which owns four exploration licenses in Central Queensland, in addition to two open pit historical gold mines, Belyando and Lucky Break, and multiple unexplored targets.

QX signed the earn-in deal back in October 2020, and initially assumed a 50 per cent stake in Zamia through the issue of 40 million ordinary shares.

The explorer has since secured an additional 20 per cent after spending $500,000 on exploration and project development during the agreed earn-in period.

Looking ahead, QXR advised it could move to 90 per cent ownership by spending an extra $1 million on these activities within the next 12 months — an outcome the company said it was confident in achieving.

In other news, QX is awaiting assay results from a first pass drilling program at the Lucky Break Gold Mine, with a report expected shortly.

QX Resources shares were down 6.25 per cent to 1.5 cents each at the close of market on Thursday.

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