Anson Resources Ltd (ASX:ASN) has kicked off its front end engineering and design (FEED) study for the proposed lithium carbonate processing plant at Paradox Lithium Project in Utah, USA.
This marks a pivotal step forward in the company's plans to construct a processing plant with annual production capacity of 13,000 tonnes of lithium carbonate equivalent (LCE).
Looking ahead, the FEED study, undertaken by Worley Group Inc., is expected to be completed by the December quarter and will contribute to Anson's financial model, supporting project financing proposals to various entities, including commercial banks, export credit agencies and US government agencies.
Crucial step towards construction
Anson's lithium plant project has demonstrated strong progress, driven by the completion of its definitive feasibility study (DFS) in 2022.
Building on the DFS findings, the FEED study will further refine the design and engineering aspects of the proposed lithium carbonate processing plant.
To ensure seamless collaboration and optimal project outcomes, Anson has appointed its engineering team to support Worley throughout the FEED study.
The combined expertise of Anson and Worley will drive the completion of the study, laying the foundation for the subsequent phases of the project.
Incorporating direct lithium extraction
Anson has collaborated with Sunresin New Materials Co. Ltd to incorporate its commercially proven direct lithium extraction (DLE) process into the FEED study.
Sunresin, the process package owner and technology provider, will work closely with the FEED team and the independently appointed design and engineering consultants.
This collaboration ensures the incorporation of the DLE process into the design and engineering work, meeting applicable US standards.
While Sunresin focuses on the design and engineering of the plant's Inside Battery Limits (ISBL) components, Worley will provide engineering support for the broader site development, including the infrastructure and utilities beyond the battery limits (OSBL).
Anson aims to source equipment and components from North America, optimising the potential for securing debt financing from government agencies, Export Credit Agencies and the United States Department of Energy.
Financing and offtake strategies
Anson has working on a comprehensive financing structure since the completion of the DFS, covering the total investment required for the proposed 13,000 tonnes per annum lithium carbonate plant.
This includes exploring potential off-take partnerships and engaging with government agencies.
The company has identified multiple financing options and determined a clear pathway to secure the necessary finance. The findings from this financial analysis have helped define the scope of work for the FEED study.