Anson Resources Ltd (ASX:ASN) will extend its lithium footprint through the acquisition of key ground in the Paradox Basin, in south-eastern Utah, USA.
The company has signed a letter of intent (LOI) to enter into a Purchase and Sale Agreement to acquire 0.568 square kilometres of privately owned, industrial-use land less than 1 kilometre from its Green River Lithium Project.
This strategic acquisition will provide Anson with the site for its proposed future mineral extraction and processing plant.
The Green River landholding comprises 1,265 placer claims over an area of 106.2 square kilometres.
Anson's proposed agreement includes water rights, as well as the oil and gas and mineral rights underlying the new landholding and provides easy access to the national rail network, interstate road system and gas and power infrastructure.
Parallel projects
Anson is exploring and developing the Green River Project in parallel with its core asset, the nearby Paradox Lithium Project which has a JORC resource of 1.04 million tonnes lithium carbonate equivalent.
This new acquisition is highly strategic as the company adds to its US lithium asset portfolio.
The closeness of the projects will enable Anson to leverage its experience and expertise in the region to fast-track exploration and mineral delineation for the Green River Project.
Anson will fund the development of the Green River Project from future cash flow generated by the Paradox Project.
The company estimates a conceptual exploration target of 2.0 billion to 2.6 billion tonnes of brine, grading 100-150ppm lithium and 2,000-3,000ppm bromine at Green River.
Anson has lodged applications with the Bureau of Land Management (BLM) for the re-entry of three wells at the Green River Project area.
About the tenure
The new tenure consists of six parcels of land, ranging from 0.8 acres to 52.17 acres and is zoned for industrial purposes only.
As noted, Anson plans to utilise the new site as the location for the future lithium extraction and production facility 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. The company’s due diligence also shows that while mineral rights vary over the six parcels, 100% of the mineral rights on parcel 050220052 (east) will form part of the purchase agreement assets.
Six parcels of privately owned land to be purchased at Green River.
The 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 Conservancy Board. The proposed agreement allows for the extraction of water from either the Colorado or Green rivers.
Further water rights give Anson water security for the successful operation of a future project at Green River.
The proximity of the land to the town of Green River also gives Anson access to a ready-made workforce.
Notably, as the land is privately owned, it is subject to a less rigorous approval process for drilling, extraction, transportation and disposal.
The size of the area will enable all activities to be performed within the property boundaries.
Anson is doing further due diligence, but upon signing the LOI, it will have secured exclusive rights to the property for purchase completion before April 2024.
A final contract will be executed when due diligence is done and Anson will pay the current owners US$2.4 million to complete the purchase terms.
Read more on Proactive Investors AU
