QXR Secures 39% of Bayrock Resources Limited

QX Resources Limited (ASX:QXR) is pleased to announce that Bayrock Resources Limited (Bayrock) has successfully completed its rights issue to raise A$1.8 million through the issue of new shares at $0.03 per share (before costs) (Rights Issue). Existing Bayrock shareholders subscribed for ~$600,000 under the Rights Issue. QXR was the underwriter to the Rights Issue, and following the conversion of QXR-provided secured loans to Bayrock, and fees payable to QXR, QX Resources Limited now holds a ~39% interest in the issued capital of Bayrock. Further details of the Underwriting Agreement are set out in the Annexure to the Company’s announcement dated 8 May 2023.

HIGHLIGHTS

• Bayrock Resources Limited (Bayrock), an unlisted public Australian company with a portfolio of highly prospective battery minerals exploration and development assets in Sweden, has successfully completed its A$1.8 million rights issue, with ~$600,000 raised from existing Bayrock shareholders
  
• QX Resources acted as underwriter and following the conversion of QXR-provided secured loans and fees, QXR now holds a significant ~39% of Bayrock’s issued capital
• Bayrock has a portfolio of highly prospective battery minerals assets in Sweden, primarily in nickel, cobalt and copper. Following completion of the Rights Issue, Bayrock completed the acquisition of all of the Bayrock projects, and is now funded to carry out further exploration at Lainejaur and the Northern Nickel Line projects in Sweden
• A diamond drill rig has been mobilised to the Vuostok project, a near surface nickel-copper project within the Northern Nickel Line, with a series of approximately 15 shallow drillholes (~450m) planned
• Assay results for the diamond hole at Lainejaur are due in the coming weeks

Bayrock Exploration Update

Bayrock has engaged a Scandinavian drilling company to mobilise a diamond drill to the Vuostok project, a near surface nickel-copper project within the Northern Nickel Line projects. Approximately 15 shallow drill holes (~450m) are planned at the Storbodsund Deposit within the Vuostok project, where high-grade nickel and copper was previously intersected 70 years ago in a flat-lying deposit of near-surface sulphides (within 20m of surface), covered by a thin veneer of glacial moraine.

In the recent Bayrock Prospectus (5 May 2023), available on the Bayrock website www.bayrockresources.com/site/investor-centre/investors-centre, the Vuostok Ni-Cu sulphide Project mineralization is described as a shallow flat-lying body of massive Ni-Cu sulphides (average grade of 2.3% Ni and 0.6% Cu (including up 3.7% Ni), between 0.3 and 3.9 meters thick, covered by glacial sediments. The sulphides were intersected by six Boliden Minerals AB drill holes completed during copper exploration in 1947 and the deposit remains open to the north, west and south. The mineralization is located close to the basal section of a gabbroic intrusive along the contact with underlying granite.

The Vuostok project is located about 60km northwest of the Lainejaur Project. The aim of the drilling is to identify and characterise sufficient mineralisation within potential trucking distance of the Lainejaur project to advance the potential for future stand-alone nickel-copper operations or additional ore feed for a potential Lainejaur operation. The two deposits are connected by all-weather roads and both are close to considerable support infrastructure.

As announced 14 June 2023, drilling at the Lainejaur Ni-Cu-Co project intersected visual sulphide mineralisation. Bayrock is expecting final assay results and an analysis of the results from the diamond drill hole at Lainejaur in the coming weeks.

Comment

QX Resources Executive Chairman Maurice Feilich commented: “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.

“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.”

Figure 1: Location of Bayrock Projects in Sweden

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