Anson Resources Ltd (ASX:ASN) has signed a water rights sub-lease agreement with Green River Companies LLC which was approved by the Wayne County Water Conservancy Board, State of Utah in January 2023.
This is a significant agreement in that it will meet the water needs of the proposed 13,000 tonnes per annum LCE production plant of the Paradox Lithium Project in Utah, USA.
The agreement is for 23 years initially and may be extended for an additional 20 years upon application by Anson.
Anson signed an agreement with Green River in October 2022.
Conditions of the agreement required the approval by the Wayne County Water Conservancy Board, State of Utah and the payment of $1 by A1 Lithium Inc. These conditions have now been met.
A significant step forward
The sub-leased amount of water exceeds the expected water consumption of Anson’s planned 13,000 tonnes per annum LCE plant at the Paradox Project and allows Anson to apply for points of diversion of the water from the Colorado or Green rivers in Utah.
This is subject to approval of the location of the diversions but can be used for industrial purposes if approved.
The agreement also allows for Anson to apply for additional water rights if there is an increase in production requirements.
The water was originally leased by the Wayne County Conservancy District, State of Utah, in 2005 and subsequently transferred to Green River Companies LLC in 2012.
Anson executive chairman and CEO Bruce Richardson said, “This is yet another significant step forward on the pathway to production at our planned 13,000 tonnes per annum LCE plant that the company plans to construct at the Paradox Lithium Project.
"Water is an essential part of lithium production and while the current process flow sheet allows for approximately 80% of the water used to be recycled, additional water needs to be added.
“We are delighted that Anson has been able to successfully negotiate this agreement with Green River Companies LLC with the support of Wayne County Conservancy District, State of Utah, which further demonstrates the support that the project continues to receive from the local and State governments.”