Anson Resources Ltd's (ASX:ASN) share prices have surged upon executing a binding memorandum of understanding (MoU) with leading global lithium extraction technology provider Sunresin New Materials Co. Ltd for a long-term strategic and commercial alliance for its Paradox Lithium Project in the US.
Under the terms of the binding MoU, Sunresin will provide equipment, consumables, innovations, and technical support services to Anson for the development, design, construction, operation and optimisation of Sunresin’s proprietary DLE technology for the production of battery-grade lithium carbonate at the Paradox Project.
Anson, Sunresin and global engineering firm Worley have worked together as a team in the engineering design of stage one of the project, which has provided the basis for the cost estimates to be released in the upcoming definitive feasibility study (DFS).
Consequently, this combined engineering team has developed a design that will integrate Sunresin’s DLE process and the downstream equipment required to produce lithium carbonate with utilities and other inputs to operate successfully in Utah, USA.
The markets have welcomed the news, with shares trading as high as $0.31, up 47.6% from previous close.
“Highest quality and cleanest lithium”
Anson executive chairman Bruce Richardson said: “We are delighted to announce the strategic partnership with Sunresin as our technology partner today.
“Sunresin’s DLE technology is the most attractive for the Paradox Lithium Project’s brine and meets our goal of producing the highest quality and cleanest lithium carbonate in the United States.
“We look forward to a long association with Sunresin.”
Agreement summary
Apart from the DLE technology, Anson will also have guaranteed access to Sunresin’s global supply chain of distribution centres and technical support network in Asia and Europe, to support Anson’s strategic development of the project.
There are no financial risks for Anson, as the parties are to cooperate at their own cost in their efforts to pursue the provision of Sunresin’s technical assistance in project development, engineering design, construction, operations and optimisation, to reach a commercial agreement in due course.
Furthermore, Sunresin will provide Anson with technology updates, innovations and support during the life of the proposed project, including future expansions and optimisations.
About Sunresin
Sunresin has more than 10 years of commercialisation experience in lithium extraction, supplying to global jurisdictions including China and South America.
To date, the company has been involved in nine full-scale commercialised DLE projects.
These projects collectively contribute towards a current total capacity of over 73,000 tonnes per annum of lithium carbonate and lithium hydroxide, of which four projects are currently producing 19,000 tonnes per annum, another four projects are near completion, and two are emerging new projects.
Sunresin overseas director Gary Zhang said: “Sunresin is delighted to join Anson as its key technology provider and support Anson to fast pace the build of a full-scaled EPC lithium plant.
“Speed to market with proven technologies is key to delivering a successful project.
“With our proven technologies and know-how and having the EPC experience to build industrial-scale DLE plants that are now in full-scale commercial production, Sunresin is well-placed to help Anson to accelerate its build."