The QX Resources Ltd (ASX: QXR) share price is powering ahead during afternoon trade. This comes after the mineral exploration company provided an update on the Turner River lithium project.
At the time of writing, QX shares are swapping hands for 3 cents apiece, up 42.86%. It's worth noting that its shares reached a multi-year high of 3.4 cents before pulling back due to profit-taking.
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What did QX announce?
In its release, QX advised it has exercised its option to acquire a 100% interest in the Turner River lithium project.
Located in the Pilbara region of Western Australia, Turner River is considered a highly prospective lithium project. The site holds an exploration licence application (ELA45/6042), covering a 45 square kilometre area.
Late last month, QX entered into a binding option agreement with Redstone Metals. A 30-day option to undertake technical due diligence was offered before proceeding with the deal.
QX has since exercised the option in advance of the due diligence period lapsing, reflecting its confidence in the project. As such, QX will issue the vendor 12 million ordinary shares in consideration of ownership rights.
In addition, both parties have agreed to the facilitation of exploration licence ELA45/6042, which adjoins the Turner River lithium project to the north. QX will make a $6,000 cash payment to Redstone Metals for the additional permit. Together with the ELA45/6042, the tenement position at Turner River increases to 84 square kilometres.
QX chair, Maurice Feilich commented:
Following the recent site visit and after further reviews of the project's geology and the surrounding prospects, we have taken the decision to not only exercise the Turner River option early but to expand our tenement holdings in the area by applying for some adjoining ground which looks equally as prospective.
Further site visits are planned and we look forward to keeping shareholders updated on progress here and with respect to the ongoing work in Queensland.
QX share price snapshot
In 2021, QX shares have doubled in value mostly due to today's gains. When looking at a 12-month period, its shares are hovering above 60%.
Based on valuation grounds, QX commands a market capitalisation of roughly $18.69 million and has approximately 666.36 million shares outstanding.
