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Anson Resources will raise up to $3 million in SPP to support lithium carbonate tests

The SPP follows a placement to strategic investor Chia Tai Xingye International valued at $1.65 million.
Funding sign
Eligible shareholders can purchase up to $15,000 worth of shares

Anson Resources Ltd (ASX:ASN) invites eligible shareholders to participate in a share purchase plan (SPP) to raise up to $3 million to support production of lithium carbonate chemicals from its Paradox project in the US.

The SPP follows a recent placement of 27.5 million shares to strategic investor Chia Tai Xingye International at 6 cents each for funds of $1.65 million and is on the same terms.

READ: Anson Resources records up to 320% increase in flow rates from Paradox Brine Project in US

Eligible shareholders have been given the opportunity to purchase up to $15,000 worth of fully paid ordinary shares at an issue price of 6 cents per share, irrespective of the size of their shareholding.

Anson’s volume-weighted average price (VWAP) of shares traded on the ASX during the five trading days immediately prior to the announcement date of the offer was 7.2 cents.

The SPP price represents an approximate 16% discount to that VWAP.

Shares to be issued under the plan are limited by the ASX Listing Rules to a maximum of 149,508,699, being 30% of the company’s share capital.

All Anson directors holding shares as at the record date intend to take up their entitlement under the SPP offer.

READ: Anson Resources prepares lithium carbonate samples for qualification testing

The company is producing lithium carbonate chemicals from the Paradox project in Utah for product qualification testing and for marketing to battery cathode manufacturers.

As well as this purpose, SPP funds will be allocated to the design and engineering of an in-field industrial-scale pilot plant, and general working capital.

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