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Anson Resources shares surge, remains on track for lithium carbonate production

Shares in the company traded up 43% to $0.105 during the morning session.

Lithium sample
The first lithium carbonate is expected to be produced in April 2018

Anson Resources Ltd (ASX:ASN) has submitted an application to lease land at its Paradox Lithium Project in Utah, US to construct a pilot plant.

The application was submitted to the state government to lease 15 acres of industrial land.

Successfully securing this industrial site will enable Anson to fast-track the development of an infield pilot plant.

Plant to produce lithium carbonate

The in-field pilot plant aims to produce lithium carbonate for product qualification.

Bruce Richardson, managing director, said: “Identifying an industrial site on which to potentially locate an in-field pilot plant is a key step to fast-track development by potentially reducing the time needed to obtain approvals.”

READ: Anson Resources will begin phase I exploration this week at U.S. lithium project

Anson is also about to begin a drilling program during which brine will be collected for processing in a bench-top plant.

This will enable first lithium carbonate to be produced in April 2018.

Discussions have also been held with battery manufacturers to bench test product.

READ: Anson Resources extends lithium brine project near high-grade lithium

The news flow resulted in shares spiking to $0.105 in early trade on volume of more than 14 million.

The bench-top test work program is fully funded following a placement to Zhongfan Group, a privately owned, 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.

READ: Anson Resources secures additional funding from Zhongfan Group

Zhongfan and Anson have a memorandum of understanding to work towards a binding agreement for Zhongfan to fund development works at the Paradox project.

Richardson said: “With the ongoing financial support of a strategic investor, the Zhongfan Group, Anson remains on track to create further shareholder value from development of its world-class lithium brine project.

“Each step brings this goal a little closer.”

Discussions with battery producers

Discussions have also been held with a number of battery producers, including those with whom Anson has existing memoranda of understanding.

The aim of these discussions is to enter into detailed negotiations for the supply of lithium to begin product qualification testing.

Anson expects to be able to supply lithium from its bench-top plant to battery manufacturers for testing in April 2018.

After completing the bench-top work, Anson intends progressing a larger scale in-field pilot plant enabling further product qualification testing.

Quick facts: Anson Resources Ltd

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ASX:ASN
Market: ASX
Market Cap: $17.63 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

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