Anson Resources Ltd's (ASX:ASN) shares have jumped 71% to $0.024 in the first 40 minutes of trade, and touched a high of $0.027.
Trading volumes are very high with 67 million shares already changing hands.
Driving the positive re-rating are details that a Memoranda of Understanding (MoU) has been executed with three leading Chinese battery manufacturers.
The MoU will help Anson work towards supply off-take agreements.
Bruce Richardson, managing director, commented:
"We are delighted with the interest shown by Chinese battery producers and in particular the interest in investment in the Paradox Lithium Project as we continue our development strategy toward production of LCE product.
"The signing of these non-binding MOU’s is an important first step in becoming part of the battery supply chain in China which is already producing more electric vehicles (EV’s) than any other country in the world and has plans to further increase the production of EV’s 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's portfolio
Paradox is one of three projects in Anson’s portfolio that provide exposure to a range of clean energy commodities and geographical locations:
- Paradox Lithium Brine Project (Utah, U.S.);
- Ajana Graphite Project (Western Australia); and
- Hooley Wells Nickel-Cobalt Laterite Project (Western Australia).
Importance of Gold Bar within the Paradox Project
Anson plans to re-enter the historic Gold Bar Unit 2 oil well to test super saturated brines for lithium.
The Gold Bar Unit 2 well has been previously drilled to a depth of 9,862 feet in search of oil.
The Clastic 31 Zone, targeted by Anson, which is known to contain supersaturated brines is located at 7,080 feet.
Historical brine analysis taken within 800 metres of the project produced results ranging from 500 ppm to 1,700 ppm lithium, comparable to the world's highest grades of lithium brine.
Location near Tesla Gigafactory
The Paradox project is located in the resources friendly jurisdiction of Utah and is an 11-hour drive to the Tesla Inc's (NASDAQ:TSLA) Gigafactory in the neighbouring state of Nevada.
It is located 4 kilometres from an operating potash mine and in a semi-desert region that has 300 days of sun per year.
The project covers an 8.9-kilometre strike length along what is known as Robert’s Rupture, a significant rift, thought to be a source of lithium rich brines.