Anson Resources shares double in price on Chinese lithium deal
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As the world’s biggest car market plans to ban petrol-powered cars in favour of electric vehicles, there is no better time for ASX-listed juniors to cut a deal with Chinese battery manufacturers.
Anson Resources is one company which is targeting the Middle Kingdom for its lithium output.
Investors flocked to the lithium junior on Wednesday after it inked a deal with three Chinese battery producers for the sale of lithium from its flagship Paradox project in Utah.
The stock (ASX:ASN) was one of the big movers on the ASX, doubling in price from 1.4c to 2.8c on Wednesday.
The Chinese companies Anson has signed with include Link Data Technologies, Far East First New Energy and CBAK Power Battery.
Anson managing director Bruce Richardson said the non-binding deals were an important first step in becoming part of the battery supply chain in China.
“China is already producing more electric vehicles (EVs) than any other country in the world and has plans to further increase the production of EVs and dominate the world market.
“Anson is well-placed to take advantage of these opportunities given the skills of the board members and the advantages of the Anson’s lithium project.”
Anson has also held several negotiations regarding investment in the project to fast track production. These talks are continuing in parallel with offtake negotiations.
Shareholders will no doubt be waiting on news that the company has reached binding agreements with the three parties.
Anson is earning up to 70 percent in Paradox which covers 2334 hectares
Anson is targeting lithium rich brines in the deepest part of the Paradox Basin near Moab, Utah.
Lithium values of up to 1700 part per million have historically been recorded within 800 metres of Anson’s claim area.
China produced and sold more than 28 million vehicles last year, according to the International Organization of Motor Vehicle Manufacturers.
In 2016, the sale of new energy vehicles topped 500,000 in China, over 50 per cent more than the previous year, according to national industry figures.
Anson currently has a market cap of $8.4 million.