Anson Resources Ltd (ASX:ASN) has entered into a non-binding memorandum of understanding (MoU) with TETRA Technologies Inc as a framework for discussing options to work together and jointly develop Anson’s Paradox Brine Project in Utah, USA.
The framework allows Anson and TETRA to discuss and negotiate an off-take agreement, the licensing of TETRA’s patented process technology to the project and managing the operation of the planned Bromine production.
“Potential to extract additional products”
Anson’s executive chairman and CEO Bruce Richardson said: “This is a significant step forward in the development of the Paradox Brine Project and serves as a tremendous validation of the quality and potential of Paradox.
“We are delighted that our discussions with TETRA have formalised into this MoU and our ability to collaborate freely provides a clear opportunity to accelerate the development of Paradox towards production.”
“TETRA is a well-established and highly credentialed partner in brominated completion fluids with significant chemical R&D and manufacturing experience, and this will allow them to provide the best solutions to ensure maximum value is extracted from the mineral-rich brines of Paradox.
“Importantly, partnering with TETRA will allow the first stage of the Project to be developed while Anson continues to increase the size of the Project by exploring the areas identified in its exploration target. Our team will also continue to assess the potential to extract additional products from Paradox.”
“This is an exciting time in the development of Paradox and we are continuing to gather considerable momentum on the pathway towards production. With a considerable pipeline of work underway, I look forward to providing updates on key developments in due course.”
TETRA looks to leverage its global chemical network
Anson is developing plans to extract lithium and bromine at a production facility located on one of the special use surface agreement (SULA) leases and is presently finalising a pre-feasibility study initially for the production of bromine and then lithium in the next stage of the development of this project.
TETRA is a global leader in the production of bromine derivative products such as Zinc Bromide (ZnBr), Calcium Bromide (CaBr) and Sodium Bromide (NaBr), which are used in several applications including oilfield completion services and zinc-bromide energy storage batteries.
Notably, TETRA is a market leader in the bromine-based clear brine fluids used in the off-shore oil and gas industry.
As announced earlier this year, TETRA is looking to leverage its global chemical network, technology, and mineral resources to enable its growth into low carbon energy markets including its PureFlowTM high purity zinc bromide for energy storage.
“Anson Resources to fully evaluate the potential partnership”
TETRA president and CEO Brady Murphy said: “We are pleased to enter this MOU with Anson Resources to fully evaluate the potential partnership including the opportunity to leverage TETRA’s brine expertise and mineral extraction and manufacturing technologies for this attractive U.S. lithium and bromine resource.
“With a recovering Oil and Gas market and significant future energy storage requirements, we will need new sources of bromine supply and the proximity of this resource to the West Coast market is beneficial. We look forward to advancing our partnership with Anson in the coming months and years ahead.
“Any definitive agreement will be subject to customary terms with regard to termination, representations, warranties, covenants, indemnification, confidentiality and other provisions for similar agreements.
“Further the definitive agreement will be subject to required approvals, including the Parties’ respective Board of Directors, governmental consents, or other regulatory requirements.
- Ephrems Joseph