Anson Resources Acquires Land for Lithium Processing Plant, Expands US Footprint
- 24-May-2023 2:33 PM
- Journalist: Nicholas Seifield
USA: Anson Resources Ltd is expanding its presence in the Lithium market by acquiring strategic land in the Paradox Basin located in south-eastern Utah, USA. The company has announced that it has signed a letter of intent (LOI) to purchase 0.568 square kilometres of privately owned land dedicated to industrial use. This land is less than 1 kilometre away from Anson's existing Green River Lithium Project.
Anson has strategically acquired the Green River landholding, consisting of 1,265 placer claims, and spanning over 106.2 square kilometres. Anson's proposed future mineral extraction and processing plant will be located at the site of the acquisition. Under the agreement, Anson will be granted access to the water rights, as well as the underlying oil and gas and mineral rights of the landholding.
Additionally, the location provides easy access to the national rail network, interstate road system, and gas and power infrastructure. Anson is currently exploring and developing the Green River Project alongside its core asset, the nearby Paradox Lithium Project, which boasts a JORC resource of 1.04 million tonnes Lithium Carbonate equivalent.
Anson has made a highly strategic acquisition, which adds to their US Lithium asset portfolio. The proximity of the new projects will allow the company to utilize their experience and expertise in the region to expedite exploration and mineral delineation for the Green River Project. The company plans to fund the development of the Project with cash flow generated by the Paradox Project. The projected exploration target for Green River is estimated to be 2.0 billion to 2.6 billion tonnes of Brine, grading 100-150ppm Lithium and 2,000-3,000ppm Bromine. It recently sought approval from the BLM for re-entry into three wells. These wells are situated on a new land tenure that includes six parcels of land, ranging from 0.8 acres to 52.17 acres, and designated solely for industrial use.
Anson has announced plans to use a new site for its proposed Lithium-producing operation at the Green River Project. The future Lithium extraction and production facility will be located on the site. Anson has presented a proposal to acquire the rights to all oil, gas, and minerals beneath the new tenure's surface area.
Through due diligence, Anson has determined that 100% of the mineral rights on parcel 050220052 (east) will be included in the purchase agreement assets, while mineral rights on the other six parcels vary. Additionally, the company will add water rights to those already subleased from the Green River Companies LLC and confirmed by the Wayne County Water Conservancy Board. Anson will be permitted to extract water from either the Colorado or Green rivers under the proposed agreement.
Anson's upcoming project at Green River has received a significant boost in water rights, ensuring water security for its successful operation. Additionally, the land's proximity to the town of Green River provides Anson with easy access to a skilled workforce. The property being privately owned allows for a less stringent approval process for drilling, extraction, transportation, and disposal. With ample space, all project activities can be performed within the property boundaries. While Anson is conducting further due diligence, signing the LOI will grant them exclusive rights to the property for purchase completion before April 2024. Upon completing due diligence, a final contract will be executed, and Anson will pay the property's current owners US$2.4 million to finalize the purchase terms.