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Anson Resources raises $1.6 million from strategic investor Chia Tai Xingye

The placement of 27.5 million shares priced at 6 cents demonstrates the investor’s support for the company’s lithium strategy.

Brine flow at Paradox project
Anson has released a maiden JORC resource estimate for the Paradox project

Anson Resources Ltd (ASX:ASN) has completed a placement to strategic investor Chia Tai Xingye International which has raised $1.65 million.

The placement of 27.5 million shares priced at 6 cents is a show of Chia Tai Xingye’s support of the Paradox Brine Project in the US and its future as a source of lithium carbonate chemicals.

In addition, Anson has placed more than 4.545 million shares to a sophisticated investor at 5.5 cents per share raising $250,000.

Performance right hurdles passed

The company has also achieved two performance rights hurdles resulting in the issuance of a further 3.2 million shares.

One of these hurdles was the successful completion of bench-top test work to produce battery-grade lithium carbonate equivalent.

The other was establishing a JORC or NI43-101 equivalent compliant resource.

READ: Anson Resources surges after producing battery-quality lithium carbonate at Utah project

Test work has produced about 1-kilogram of 99.9% pure battery-quality lithium carbonate from brine sourced at the Paradox project in the US state of Utah.

This was achieved in benchtop test work as part of the design and engineering of Anson’s planned in-field pilot plant.

A sample was produced using a dedicated and advanced ion exchange (IX) system, which operated using accelerated parameters to produce eluate for the lithium carbonate sample project with one pass of IX.

READ: Anson Resources reveals maiden brine resource at Paradox

Anson also recently revealed a maiden JORC-compliant resource for the project.

The estimate totals 128.56 million tonnes of brine grading 173ppm lithium, 414ppm boron, 3,321ppm bromine and 166.5ppm iodine.

This results in an estimate of 118,000 tonnes of lithium carbonate, 304,442 tonnes of boric acid, 426,852 tonnes of bromine and 21,400 tonnes of iodine.

READ: Anson Resources secures over $15 million funding for lithium carbonate plan

Placement funds secured by Anson follow a recent $15 million equity facility with energy and resources focused investment company, Long State Investment Limited.

Anson may, at its discretion, call for Long State to subscribe for tranches of shares over the next 24 months up to a total value of $15 million.

Funds from this facility may be used for the lithium carbonate production work and for the pre-feasibility study it plans to undertake in early 2020.

Anson also intends to use the facility as part of funding for the pilot plant work.

Quick facts: Anson Resources Ltd

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ASX:ASN
Market: ASX
Market Cap: $18 m
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