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QX Resources Ltd (ASX:QXR) has seen its share price rise more than 16% on news that the company is set to strengthen its lithium holdings in the United States through a renegotiated option agreement.
The agreement – which involves IG Lithium (IGL) – relates to the Liberty Lithium Brine Project in California. The two companies have renegotiated the option agreement to allow for a reduction in option payments, and provide QXR with the opportunity to take on two additional prospective lithium brine projects in the US.
In October 2023, QXR had entered into an option agreement with IGL to acquire an interest of up to 75% in the latter. According to the renegotiation, QXR has the option to take on 25% of IGL on or before June 30, 2025 – reducing the former’s cash option payments from US$1.7 million to US$500,000.
The decision is boosted by QXR’s other moves in relation to lithium, with an additional agreement allowing it to take on a 15% interest in a company holding two prospective lithium brine projects in Utah and Nevada across 10,660 hectares.
The unlisted company in question – IGX Minerals LLC – is connected to IGL, and QXR has entered an agreement to take on 15% worth of investment in it on or before June 30, 2025.
Crucially, this has attracted the interest of American developers and producers of battery-grade lithium products, who are in discussion with IGX and IGL in relation to supplying future lithium brine feedstock.
Managing director Steve Promnitz said the agreements would boost QXR’s lithium footprint in a prospective and interested territory.
“QXR, through the new agreements, now has exposure to three large, prospective lithium brine projects, with reduced cash commitments, diversifying the portfolio,” he said.
“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.”
At 11:37 AEST, QXR shares were trading at 0.7 cents – a rise of 16.67% since the market opened.
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