Ascent Resources PLC (AIM:AST) shares got a lift on Wednesday thanks to a potential new collaboration, with the explorer announcing a new option deal in Utah.
The small-cap told investors it has entered a 60-exclusivity period with Neometals, and its 'well-resourced local partner' Omaha Value, to negotiate a deal for acreage in the Paradox basin, an area of exploration that's been popularised by AIM peer Zephyr Energy.
This, however, is not solely an oil and gas play. If a venture deal is agreed, it would allow the exploration and potential extraction of lithium and potash from deep critical-mineral brines.
Ascent said the arrangement offers a new monetisation pathway without upfront drilling or development costs and leverages historic intersections of artesian brines in the basin.
"This transaction highlights the embedded multi-commodity potential of Ascent's Utah and Colorado acreage across hydrocarbons, helium, CO2 sequestration and now critical mineral-rich brines," Ascent explained.
"Ascent can unlock additional value from its existing asset base at minimal cost and dilution to shareholders," it added.
In London, Ascent shares were on the up, climbing nearly 6% to trade at 0.45p.