Anson Resources Ltd (ASX:ASN, OTCQB:ANSNF) has received a strong validation of its Paradox Basin lithium brine project in Utah, after the US Export-Import (EXIM) Bank delivered a non-binding letter of interest (LoI) for up to US$330 million in long-term debt financing.
The financing, offered under the official export agency’s supply chain strengthening objectives through the “Make More in America” Initiative, would go to building a lithium production plant in Paradox Basin.
The company says the LoI represents a material step forward in ASN’s project funding strategy and recognition of the strong engagement Anson’s management has had with the US Government and industry partners.
Environmentally friendly lithium source
“We are delighted to receive this Letter of Interest from US EXIM following extensive collaboration with multiple government and industry stakeholders in the United States,” Anson Resources executive chair and CEO Bruce Richardson said.
“This LoI reflects our continued strong development, permitting progress and community engagement efforts in the United States and Southern Utah in particular.
“The United States seeks to develop a domestic and reliable source of critical minerals and the Paradox Basin, which we believe is the largest source of lithium in the United States, has a significant role to play.
“Our Direct Lithium Extraction (DLE) technology will produce one of the most environmentally friendly sources of lithium globally.
“This will support the development of the new energy economy, from electric vehicles to drones and defence.”
Promoting local jobs
While the LoI is not a financial commitment, it is the first step in the formal EXIM application process.
EXIM is an independent Executive Branch agency with a mission of supporting American jobs by facilitating the export of US goods and services.
“This LoI reflects the Paradox Project in Sothern Utah’s potential to be a major source of new, high paying jobs and stimulate investment in the region,” Anson chief financial officer Matthew Beattie said.
“While non-binding, the company views the LoI as an important step in advancing our project financing plan for the development of our world class Paradox Basin projects.
“If finalised, the US EXIM facility will make up a substantial portion of the overall funding requirements.”