QX Resources (ASX:QXR) has entered into a binding agreement to acquire the Madaba Uranium Project in Tanzania, from Kom Mining and Oztrax.
Madaba, covering 613km2, is situated in southern Tanzania and is considered highly prospective for uranium mineralisation targeting a similar geological deposit as the Nyota deposit. Nyota contains a resource of 125 million pounds of triuranium octoxide at 300 parts per million.
The company will pay US$500,000 to Kom Mining and a further US$30,000 to Oztrax for the licences that make up Madaba.
To help fund the development of the project and ongoing exploration across its existing projects, QX intends to raise $1.5 million via a placement. The issue price, $0.04 per share, representing a 4% discount to the 15-day volume weighted average price.
QX will also raise a further $818,000 via a non-renounceable rights issue under the same issue price as the placement.
For every two shares subscribed for, participants will receive one free-attaching option exercisable at $0.001 expiring on 27 December 2027.
QX intends to begin a series of low-cost exploration programs to refine initial drill targets, including field reconnaissance, infill airborne and ground-based detailed radiometric surveys, as well as confirmatory trenching, auger, aircore and reverse circulation drilling.
The Madaba Project contains over a dozen high-priority targets delineated through radiometrics or sporadic drilling and trenching. These targets include Anza and Uno, which have returned grades up to 1.2% and 0.87% triuranium octoxide, respectively.
QX Resources is a battery minerals-focused explorer with hard rock lithium assets in Western Australia, lithium brine projects in the US, and copper, molybdenum, and gold assets in Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: QX Resources
