An oversubscribed share purchase plan (SPP) has provided A$2.3 million in funding for Anson Resources Ltd (ASX:ASN, OTCQB:ANSNF) while also serving as a strong validation of the company’s plans to grow its lithium brine assets in the US.
Having already raised A$5 million in a share placement, ASN has opted to accept all oversubscriptions in full and trading of the new shares will begin tomorrow, October 18.
Strong endorsement
“We are very encouraged by the response to the SPP,” Anson Resources executive chair and CEO Bruce Richardson said.
“The number and value of applications is a strong endorsement of our growth strategy for Anson and the development of its flagship assets in the tier-1 jurisdictions of Australia and the US.
“All eligible directors and senior management participated in the SPP. On behalf of the Anson and A1 Lithium team, I would like to thank all our shareholders.”
The new funding will go to developing ASN’s existing assets, including the flagship Paradox Lithium Project, host to a JORC resource containing 1 million tonnes of lithium carbonate equivalent (LCE).
A definitive feasibility study released in 2022 outlined lithium production of 13,074 tonnes per year of LCE over an initial 10-year life, with potential for a total production life of 23 years should no additional resources be incorporated.
The company is also developing the Green River Lithium Project just 40 miles from Paradox, which is shaping up as a rapid development opportunity.
Some 85% of permitting for the project is already complete and it sits close to major infrastructure including highways, rail, power, gas and water.
ASN intends to use patented direct lithium extraction technology (DLE) to produce brine from its projects: