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Anson Resources secures capital to test lithium well

The Gold Bar Unit 2 well was drilled to a depth of 9,682 feet in search for oil and the planned re-entry is targeting lithium in the Clastic Zone 31 horizon.

Lithium brine grades at Paradox are comparable to the world's highest

Anson Resources (ASX:ASN) has received commitments from sophisticated and professional investors to raise $461,961 in a share placement.

The placement will see circa 42 million shares issued priced at $0.011 and 1:1 attaching options exercisable at $0.025 and expiring 10 August 2019.

Funds will be used for the re-entry of the historical Gold Bar Unit 2 well to test for lithium within Anson’s flagship Paradox Lithium Brine Project located in the U.S. state of Utah.

Drilling is expected to commence in the coming December quarter, subject to government approvals of drilling permit application.

Shareholders will also be given the option to participate in a share purchase plan (SPP) to raise up to an additional $400,000.

Paradox Lithium Brine Project

The 2,334 hectare Paradox project is located in the resources friendly jurisdiction of Utah and is an 11 hour drive to the Tesla Gigafactory in the neighbouring state of Nevada.

It is located 4 kilometres from an operating potash mine and in a semi-desert region that has 300 days of sun per year.

Historical brine analysis taken within 800 metres of the project produced results ranging from 500 ppm to 1,700 ppm lithium.

The project covers an 8.9-kilometre strike length along what is known as Robert’s Rupture, a significant rift, thought to be a source of lithium-rich brines.

A historical well, Gold Bar Unit 2, was drilled to a depth of 9,682 feet within the project and intersected Anson’s target zone known as Clastic Zone 31.

Clastic Zone 31, which contains lithium-rich brines, is possibly replenished from aquifers below, and there are an additional 20 untested Clastic Zones possibly containing brines.

SPP details

Anson intends to offer eligible shareholders the opportunity to increase their holdings in the company, on the same terms as the abovementioned placement, through a SPP.

The SPP will raise up to circa $400,000 via the issue of up to 36,3 million shares priced at $0.01 with 1:1 attaching options exercisable at $0.025 and expiring 10 August 2019.

Full details of the SPP will be set out in the SPP offer documents to be issued shortly.

Quick facts: Anson Resources Ltd

Price: 0.0195 AUD

Market: ASX
Market Cap: $15.28 m

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Anson Resources initiates $3 million fundraising to advance its Paradox...

Anson Resources Ltd (ASX:ASN) CEO Bruce Richardson tells Proactive the firm has launched a share purchase plan (SPP) offer to raise up to $2 million as part of a $3 million capital raising effort to advance its Paradox Brine Project in Utah. Richardson says the funds raised will be used to...

on 17/6/20

2 min read