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Anson Resources aims to fast-track Paradox Lithium Project with the help of Zhongfan Group

Anson placed 20 million shares to Zhongfan at $0.03 to raise $600,000.

Anson shares have soared 28.2% today to $0.05

Anson Resources Ltd (ASX:ASN) has executed a Memorandum of Understanding (MoU) with Zhongfan Group, a large scale international enterprise group based in Shanghai, China.

Zhongfan integrates resource development, mineral trading and new material technology development, and has over US$2 billion in annual turnover.

The agreement provides scope for Anson and Zhongfan to work towards a binding agreement whereby Zhongfan may invest to facilitate the funding of Anson’s Stage 3 development works at the Paradox Lithium Project located in the U.S. state of Utah.

Anson remains on schedule to commence drilling in the December quarter 2017, and the company plans to re-enter the historic Gold Bar Unit 2 oil well to test super saturated brines for lithium.

The Gold Bar Unit 2 well has been previously drilled to a depth of 9,862 feet in search of oil.

The Clastic 31 Zone, targeted by Anson, which is known to contain supersaturated brines is located at 7,080 feet.

Historical brine analysis taken within 800 metres of the project produced results ranging from 500 ppm to 1,700 ppm lithium, comparable to the world's highest grades of lithium brine.

Why Anson?

Zhongfan were particularly attracted to Anson’s target to produce lithium carbonate equivalent (LCE) from a pilot plant linked directly to the brine from the planned exploration and sampling program which will take place.

Zhongfan indicated that it has interest in entering into negotiations to participate in the funding of the in-field pilot plant through equity investment, convertible notes or a pre-paid offtake agreement for the supply of LCE and the potentially other minerals that could be produced by the processing plant.

Bruce Richardson, managing director for Anson, commented:

"The MoU with Zhongfan and their interest in funding the fast-tracking of the Stage 3 development works of the Paradox Lithium Project represents to Anson an opportunity to access sales channels to multiple cathode and battery manufactures in Asia and particularly China."

Quick facts: Anson Resources Ltd

Price: 0.019 AUD

Market: ASX
Market Cap: $14.89 m

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on 17/6/20

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