Underwrites Rights Issue For Battery Minerals Focused Bayrock Resources Limited

QX Resources Limited (ASX:QXR or the Company), is please to provide an update on its strategic investment in Bayrock Resources Limited (Bayrock). As announced on 16 and 24 March 2023, the Company has provided secured loans of $585,000 to Bayrock to help complete the acquisition of its portfolio of highly prospective, 100%-owned battery mineral projects, the Lainejaur and Northern Nickel Line projects in northern Sweden. The Projects are considered highly prospective for key battery metals, nickel, copper and cobalt, presenting as high grade quality “Class 1” nickel-copper-cobalt sulphide projects.

• Bayrock Resources Limited (Bayrock), an Australian unlisted public company holds a portfolio of highly prospective battery minerals assets in Sweden, primarily in nickel, cobalt and copper
• Bayrock has lodged a rights entitlement issue prospectus with ASIC to raise A$1.8 million (before costs) at $0.03 per share, fully underwritten by QX Resources Limited (Rights Issue)
• The funds from the Rights Issue will be applied to:
  • exploration, including drilling, assays and technical consultants
  • payments to the vendors of the Bayrock projects
    
  • repayment of debt, including to QXR
  • expenses of the offer
    
  • general working capital

In order to recapitalise Bayrock’s balance sheet, repay debt (including to QXR and project vendors) and fund ongoing activities at Lainejaur and the Northern Nickel Line (including high-impact drilling), QX Resources has converted $255,000 of existing debt (principle, interest and fees) into Bayrock fully paid ordinary shares, representing ~16% of Bayrock, and fully underwritten Bayrock’s $1.8 million rights issue. Further details of the Underwriting Agreement are set out in the Annexure.

Following the Offer, QXR’s loans to Bayrock will be repaid in full and Bayrock will not have any material debt.

QX Resources Chairman Maurice Feilich said: “QXR’s financial support for Bayrock has allowed the Company to make critical milestone payments to acquire its assets in Sweden and advance exploration activities. We are pleased with their progress so far, and the conversion of our loans into Bayrock shares reflects our strong confidence in the Company’s future prospects. We are committed to unlocking value for all Bayrock shareholders and continuing to support their exploration and project development efforts in Sweden.”

About Bayrock Resources Limited

Bayrock Resources Limited is an exploration company which holds full ownership rights for a multi-asset development portfolio in Sweden. The Company’s flagship is the Lainejaur project, an advanced-stage nickel- dominated battery metals asset. Through its fully-owned subsidiary, Bayrock also holds Exploration Permits at five additional sites that make up the Northern Nickel Line portfolio, and these are prospective for nickel-copper mineralisation as well as cobalt, gold and PGMs.

The company is led by an experienced management team with a strong track record of exploration success as well as particular expertise the development of sulphide nickel-cobalt deposits. With a planned multi-stage drilling program, the Company looks forward to updating the market with consistent news flow.

Further information is available at: www.bayrockresources.com

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This article includes content from QX Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.