Anson Resources Ltd (ASX:ASN) has boosted its cash position after agreeing an additional placement to Zhongfan Group Co. Ltd.
Anson will issue a further 20 million shares to Zhongfan at $0.088 to raise $1.76 million.
The proceeds will be used to fund drilling to further define the mineral content of the lithium rich brines and to progress to delineating a JORC Resource at Anson’s Paradox Lithium Project.
The project is located in the “Lithium Four Corners” area of the U.S.
READ: Anson Resources aims to fast-track Paradox Lithium Project with the help of Zhongfan Group
Bruce Richardson, managing director, said: "This second round of investment by Zhongfan further strengthens Zhongfan’s commitment to be one of Anson’s development partners.
"Anson remains confident that as planning of the next phases of exploration and development continue, that further funding will be provided by Zhongfan under the memorandum of understanding."
First placement
Anson previously placed 20 million shares to Zhongfan in October 2017 at $0.03 to fund a bench-top pilot plant to assist with the development of an in-field pilot plant.
Zhongfan and Anson then signed a memorandum of understanding to work towards a binding agreement for Zhongfan to fund development works at the project.
Analysis
Zhongfan are particularly attracted to Anson’s target to produce lithium carbonate equivalent from a pilot plant linked directly to the brine from the planned exploration and sampling program to commence in the December quarter 2017.
This will enable product qualification testing in the short to medium term.