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Anson Resources Limited (ASX: ASN, ASNOC, ASNOD) (Anson or the Company) is pleased to announce that it has signed a letter of intent (LOI) to enter into a Purchase and Sale Agreement for the strategic acquisition of 0.568km2 of privately owned, industrial use land at its Green River Lithium Project in the Paradox Basin, in south-eastern Utah, USA.
Highlights:
- Letter of Intent signed for strategic acquisition of 140.39 acres (0.568 km2) as the site for the Green River Lithium Project's proposed future mineral extraction and processing plant
- The property to be acquired is privately owned, industrial use land and is located less than 1km from the Green River Project
- The proposed agreement includes water rights, as well as the oil and gas and mineral rights underlying the new landholding
- The site also provides easy access to the national rail network, interstate road system and gas and power infrastructure, plus access to the Green River.
- Due diligence is being conducted to confirm ownership prior to final contract execution
- Anson plans to develop the Green River Project in parallel with its flagship asset, the nearby Paradox Lithium Project
The new landholding is located less than 1km from the Green River project area, which comprises 1,265 placer claims over an area of 106.2 km2 (ASX Announcement 30 January, 2023). The Green River Project was staked in January and Anson proposes to explore and develop it in parallel with the development of its core asset, the nearby Paradox Lithium Project which has a JORC resource of 1.04 million tons lithium carbonate equivalent (LCE), see ASX Announcement 2 November 2022.
The new tenure consists of six parcels of land, which range from 0.8 acres (01—156-007) to 52.17 acres (05220022), and is zoned for industrial purposes only (see Map 1).
Anson plans to utilise the new site as the location for the future lithium extraction and production facitlity for its proposed lithium producing operation at the Green River Project.
The proposed agreement includes all oil, gas and mineral rights underlying the surface area of new tenure. Mineral rights vary over the six parcels, however due diligence completed to date indicates 100% of the mineral rights on parcel 050220052 (east) will form part of the purchase agreement assets.
The proposed agreement also includes water rights. These water rights will be added to those that have already been subleased from the Green River Companies LLC and confirmed by the Wayne County Water Consevancy Board.
Significantly, the proposed agreement allows for the extraction of water from either the Colorado or Green Rivers (ASX Announcement 23 January, 2023). The addition of water rights with the purchase of the property will provide futher water security for the successful operation of a future project at Green River.
The new site also provides access to the national rail network, interstate road system, as well as gas and power infrastructure, and access to the Green River. It is also situated in close proximity to the town of Green River, providing easy access to other supporting infrastructure and a potential workforce.
Privately owned land is subject to a less rigourous approval process for drilling, extraction, transportation and disposal. Given the size of the area to be acquired, all of these activities may be performed within the property boundaries. The Company is investingating these opportunities in more detail and will provide further information to the market as this investigation concludes.
Upon signing of the LOI, Anson has secured exclusive rights to the property for purchase completion before April 2024. Once due diligence has been completed and a final contract has been executed, Anson will pay to to the current owners USD2.4 million to complete the purchase terms.
Map 1: Showing six parcels of privately owned land to be purchased at Green River
About the Green River Lithium Project
Anson considers the Green River Project to be a significant strategic addition to its US lithium asset portfolio. The Company plans to leverage its experience and expertise in the region to fast-track exploration and mineral delineation for the Green River Project and intends to fund the development of this project from future cash flow generated by the Paradox Project.
Click here for the full ASX Release
This article includes content from Anson Resources, 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.
ASN:AU
Anson Resources: Developing a Near-Term Clean Energy Project in Utah
Anson Resources (ASX:ASN) focuses on the resources necessary to meet the energy demands of the future. The company’s flagship project, the Paradox Lithium Project, has the potential to become a world-class lithium producer and is located near Tesla’s massively productive gigafactory in the United States. Additional projects target nickel, copper, and uranium.
The company's flagship Paradox Project is located in Utah, a mining-friendly and politically stable jurisdiction. The asset holds significant lithium brine deposits, and the company has identified an extraction method that has delivered an extraction rate of 91.5 percent. This technique calls for passing the lithium through the resin, which captures the resin, and can then be separated from the resin with water. From that state, it can be processed into lithium carbonate. The company is currently undertaking a major JORC resource expansion drilling program, the results of which will feed into a Detailed Feasibility Study being carried out by global engineering firm, Worley.
Company Highlights
- Anson Resources is focused on developing its flagship project, the Paradox Lithium Project, into a significant lithium producing operation.
- The company is currently undertaking a major JORC Resource expansion program at Paradox, which will form part of a Detailed Feasibility Study which is being undertaken by leading global engineering consultants, Worley.
- The Paradox Project contains multiple lithium brine targets, and the company has identified an extraction method that produces an impressive return rate of 91.5 percent. Also, the project’s Direct Lithium Extraction (DLE) method is expected to deliver significant ESG benefits
- In addition, the project’s brine also contains bromine, creating a valuable second potential revenue stream for the asset.
- Anson Resources’ other projects target nickel, copper, vanadium and uranium. The company aims to supply energy markets with the mineral resources necessary to power the future.
- The company has an experienced management team with a mix of technical, corporate and commercial skills driving the project towards its ambitious goals.
This Anson Resources company profile is part of a paid investor education campaign.*