Anson Resources Ltd (ASX:ASN) has completed the placement of 50 million shares to strategic investor Chia Tai Xingye International for at an issue price of 3 cents per share to raise $1.5 million.
The company issued these shares on Tuesday within its placement capacity and within the provisions of Part 6D.2 of the Corporations Act and Chia Tai now holds 19.58%.
This investment follows on from Chia Tai’s participation in a placement in June 2019 where it purchased 27.5 million shares at an issue price of 6 cents.
Anson’s securities last traded at 3.6 cents.
Funds to advance brine project
The funds are likely to be used to continue advancing the development of Anson’s flagship Paradox Brine Project in Utah, US.
Anson last month produced its first lithium chloride from test work.
This sample will be further processed into lithium carbonate and sent to potential customers to test its suitability for use in their lithium battery cathodes.
The test work aims to produce a 20-kilogram sample of lithium carbonate.
Exploration program
An exploration program is also set to begin alongside the test work programs.
Anson most recently revealed that it plans to re-enter the Skyline Unit 1 and Long Canyon Unit 2 wells to sample brine at Paradox.
Anson established its maiden JORC resource by re-entering old oil wells and this program plans to build upon that resource.