Quantum Resources Ltd. said June 8 it intends to acquire 100% of Halcyon Resources Pty. Ltd., a private Australian company focused on the production of high purity alumina, or HPA.

Halcyon holds the exploration license application E70/4969 in Western Australia, which covers the Tambellup kaolin deposit, and holds intellectual property for processing of kaolin into specialty alumina, including HPA, using the Griffin process.

Following the transaction, the company will look to determine an exploration target from historic data; conduct drilling; establish a JORC 2012-compliant resource estimate; and undertake a mining, beneficiation and HPA process design scoping study.

According to the binding term sheet, Quantum will pay an initial A$20,000 and issue 35 million common shares. The company will then issue 50 million common shares total in two tranches on reaching different milestones.

Quantum intends to place 50 million common shares to raise gross proceeds of up to A$550,000. The offer includes one new listed option for each 2 shares subscribed.

Funds from the placement will be used for exploration on existing projects including the Thompson Bros lithium project, due diligence on the Halcyon acquisition, investigating new opportunities and for working capital.