Anson Resources Ltd (ASX:ASN) has added $50 million to the coffer for its Paradox Lithium Project in Utah, USA after securing binding commitments from institutional and sophisticated investors for a single tranche placement.
The placement was upsized to accommodate significant demand from high-quality international and domestic institutional investors.
Anson will issue about 139 million shares at $0.36 each, which is a 15.3% discount to the September 14 closing price of $0.425, and a 3.9% discount to the 10-day volume-weighted average price (VWAP).
Outstanding endorsement
Anson executive chairman Bruce Richardson said: “The result of the capital raise is an outstanding endorsement of the Paradox Lithium Project and for ‘made in USA’ battery grade lithium carbonate.
"We were delighted to price the placement at a tight discount to the prevailing VWAPs, despite immediately following a significant market downward correction. Interest in the placement far exceeded Anson’s requirements, with Anson upsizing to $50 million to facilitate access to the register for quality investors.
"The post-placement register provides a strong shareholder base upon which to progress the next phase of the project’s development. The funds raised will allow for expanded project development workstreams and accelerate Anson toward a final investment decision on the project.
"On behalf of the company, I would like to extend a warm welcome to new shareholders and thank existing shareholders for their support through Anson’s journey to becoming a producer of battery grade lithium carbonate in the United States.”
Major EV battery supplier
Proceeds from the placement will be used to accelerate Paradox’s development towards a final investment decision in the second quarter of 2023, through the completion of front-end engineering design work, permitting and ordering of long lead procurement items.
Anson plans to develop Paradox into a significant lithium producing operation for the US electric vehicle market.
Phase 1 of the project will use Direct Lithium Extraction (DLE) to process mineral-rich sub-surface brine to produce battery grade lithium carbonate. Phase 2 will see the expansion of lithium production capacity and the commencement of bromine production.
Anson will also use funds from the placement for further resource expansion, including the execution of its ‘Western Expansion Strategy'.