QX Resources (ASX:QXR) has secured a 39% interest in unlisted public Australian company Bayrock Resources following the completion of a rights issue to raise $1.8 million.
The company says it acted as underwriter to the rights issue, under which it issued new shares at $0.03 per share. Following the conversion of QXR-provided secured loans to Bayrock and fees payable to QX Resources, it now holds a 39% interest in the issued capital of Bayrock.
QX Resources reports $600,000 of the total $1.8 million was raised from existing Bayrock shareholders, with the funds expected to be used to carry out planned exploration activities at the Lainejaur Nickel-Copper-Cobalt Project and the Northern Nickel Line projects in Sweden.
Meanwhile, Bayrock is noted to have engaged a Scandinavian drilling company to mobilise a diamond drill to its Vuostok Project, a near-surface nickel-copper project within the Northern Nickel Line projects.
Drilling is expected to comprise 15 shallow drillholes at the Storbodsund deposit, where ‘high-grade’ nickel and copper was previously intersected 70 years ago within a flat-lying deposit of near-surface sulphides.
Shares in QX Resources closed 15% higher at $0.023 on Tuesday 4 July.
With the rights issue now complete, QX Resources announces final assays from diamond drilling at the Lainejaur Project are expected to be received in the coming weeks.
Commenting on the investment, QX Resources Executive Chairman Maurice Feilich says: “Bayrock has received excellent support from its existing shareholder base, and together with QXR’s investment, the company is sufficiently capitalised to deliver further value through ongoing drilling in Sweden.
We are encouraged with progress to date and look forward to first assays from the Lainejaur Ni-Cu-Co Project and updates from the program at Vuostok, where the drill rig is turning.
“… the company is sufficiently capitalised to deliver further value through ongoing drilling in Sweden“
QXR also expects to shortly provide shareholders with plans for the next phase of exploration activities planned at its Pilbara lithium assets, which remain an important focus for the company.”
QX Resources is an ASX-listed company focused on the exploration and development of battery minerals, with hard rock lithium assets in a prime location in Western Australia and gold assets in Queensland.
Bayrock Resources is an unlisted Australian company with a portfolio of ‘highly prospective’ battery minerals assets (primarily nickel, copper, and cobalt) in Sweden.
QX Resources had $2.65 million cash at hand and $1 million in investments at the end of 31 March 2023, as stated in its latest quarterly report released on 28 April 2023.
Write to Adam Drought at Mining.com.au
Images: Qx Resources Ltd