QX Resources Limited (ASX: QXR) has entered a non-binding letter of intent (LOI) for the right to acquire a controlling interest in a large, recently-consolidated lithium brine project – Liberty Lithium – in California, USA.
The Liberty Lithium project area covers more than 10,000Ha (25,000 acres) of recently consolidated contiguous leases which cover a closed basin just inside the Californian border from Nevada USA. It bears similarities to well-known lithium brine projects in Argentina/Chile.
Surface brine samples have returned up to 215mg/L lithium in brine at surface within an anomaly extending up to 10km long over 2500Ha. Geophysical analysis shows a large basin over 1,000m deep, with geothermal fluids along a faulted margin with elevated lithium brine results.
This LOI provides QXR with a 75-day exclusivity period to conduct technical and legal due diligence and negotiate terms and structuring of an option agreement to acquire 75% of the Project from a private US company. A fee of US$50,000 will be paid for this exclusive LOI period, which would become a break fee if a transaction was not finalized.
“QXR Management has undertaken a high-level review of the Liberty Lithium Project and considers it exciting, demanding detailed due diligence,” Managing Director, Stephen Promnitz, said.
“A large enclosed deep basin with lithium brines in an arid area is a look-alike for South American brine projects. Projects like this could be amenable for direct lithium extraction (DLE) or evaporation for pre-concentration.
“End users are seeking battery raw materials supply from the continental USA and Liberty Lithium would be a great candidate. It’s an attractive project in the right jurisdiction and comes with a skilled team on the ground to operate it. I look forward to progressing due diligence and working with the vendors on potential deal terms and structure.
“Next steps will comprise detailed due diligence including an extensive data review, together with legal structuring of the project and ongoing site visits by the QXR management team.”
For further information please visit: https://qxresources.com.au/
