Anson abuzz with $5m raising for Green River lithium

$5m in the ASN kitty to accelerate development of its Green River Lithium Project
Another $2m being raised via SPP
Funds to be used to produce offtake samples and resource expansion by way of the drill

Special Report: Anson Resources counts up 5 million votes of confidence to accelerate its lithium development in the Beehive State of Utah.

Anson Resources (ASX:ASN) has tallied up $5m by placement to accelerate development and fund the engineering and optimisation work over its Green River Lithium Project in the south eastern end of the US state of Utah.

Both existing and new institutional and sophisticated investors joined the raising, now in the books and set to be counted up alongside an additional $2m raising by way of a share purchase plan.

With significant infrastructure in place and permitting well advanced, a chunk of the new cash will go towards more resource drilling and production of bulk samples of battery-grade lithium carbonate from a sample demonstration plant to present to offtakers.

Anson has taken support for the raising as validation of its strategy to accelerate development of Green River, and executive chairman Bruce Richardson said the company was delighted by the support through a currently deflated lithium market.

“We welcome new shareholders who have realised the potential of ‘US Made’ lithium and appreciate how advanced our Green River Project really is in this context,” Richardson said.

“The funds raised will allow for Anson to continue to optimise the Green River Project, produce bulk samples for qualification by offtakers and expand our lithium resource.”

Green river flow

The project was the first to be approved by the Beehive State for processing brine for lithium extraction, a process that confirmed the water resources and surrounding areas will not be negatively affected by the process.

The location of planned extraction wells has been proposed on sites purchased by Anson last year as the company looks towards becoming a domestic producer of US lithium.

Green River currently holds a contained resource of 1.5 million tonnes of lithium carbonate equivalent, but Anson has set an exploration target for a high of 2.6 billion tonnes of brines grading between 100-150ppm lithium – and as much as 3000ppm bromine into a growing market.

Domestic duties

While the price tag for a tonne of lithium carbonate has fallen from record-shattering highs, the US has not forgotten the lesson of weaning itself off a current state of import dependence.

Though China has yet to put controls over lithium, bans over rare earths, graphite and antimony exports have shown its clear willingness to flex supply chain muscle.

The US only had about 5000 tonnes of lithium production to its name in 2022 and Washington has since, if somewhat slowly, put in backing to raise its domestic profile of critical minerals.

This article was developed in collaboration with Anson Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.