QX Resources (ASX:QXR) has entered into a letter of intent with American manufacturer of battery-grade lithium producer Stardust Power, to negotiate a formal agreement.
The LoI involves assessing the lithium brines from QX’s ‘large-scale’ Liberty Lithium Brine Project in the US, dependent on results and evaluating options to potentially supply Stardust with lithium brine products on a non-exclusive basis for processing into battery-grade lithium materials for electric vehicles.
QX, which has a market capitalisation of $21 million, is awaiting results and interpretations in the coming weeks from 2 drillholes, located 4km apart, which intersected numerous brine bearing aquifers at the Liberty project.
Managing Director Stephen Promnitz says the company has been in discussions with direct lithium extraction technology providers, lithium product processors and end users to advance the project.
“Stardust is an emerging new processor of lithium for batteries and we are keen to advance discussions with them.”
Stardust is developing a strategically and centrally located lithium refinery in Oklahoma with plans for producing up to 50,000 metric tonnes per annum of battery-grade lithium and is securing sources of lithium brine feedstock to turn into battery grade lithium products ready for use across the lithium supply chain.
QX has the ability to earn a 75% interest in the 102km-square Liberty project. The project is one of the ‘largest’ single lithium brine projects in the US.
QX Resources is a battery minerals explorer and developer focused on its hard-rock lithium assets in Western Australia, lithium-brine projects in the US, and copper-molybdenum-gold projects in Queensland, as well as a strategic investment in Sweden.
As of 31 December 2023, the company had $2.11 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: QX Resources
