Anson Resources (ASX:ASN) has been approved for a US$194 million ($269 million) incentive to support its subsidiary, A1 Lithium, with the development of its Green River Lithium Project in Utah, US.
The Utah Inland Port Authority (UIPA) approved the business incentive, calculated as 50% of the current and projected annual property tax differential for up to 25 years.
The incentive will commence upon completion of the project and will remain available contingent upon continued operations, capped at US$194 million.
Anson will receive approximately US$8 million each year for 25 years.
For Anson, this approval is one of multiple incentive programs under discussion with the Government of Utah.
The UIPA has also provided an alternative arrangement to support bonds that can be drawn against to fund public infrastructure, supporting the development of the project.
Under this arrangement, public infrastructure can include utility extensions such as power, water, and gas, as well as rail and road upgrades or extensions. This is subject to agreement from the local authorities as well as the UIPA Board.
Anson CEO Bruce Richardson says the approval of the business incentive is “an important step forward in putting the finance stack together for the 10,000 [tonnes per annum] lithium carbonate plant at Green River”, although it is a complicated structure.
“We have previously stated that we are working on several finance options structures that limit the dilution of our shareholders,” Richardson says.
“This is part of our company’s strategy. We continue to work on pre-production finance stacks as well as options to improve the projected financial returns that also will support debt and strategic investment financing.”
As reported by Mining.com.au last month, Anson received a letter of advice from the Economic Development Corporation of Utah, with proposed incentives worth US$357.7 million.
The package includes US$127.75 million of post-performance state tax reimbursements over 20 years from the Governor’s Office of Economic Development, representing 50% of state taxes paid.
The Green River Project holds a mineral resource estimate comprising indicated resources of 183,000 tonnes lithium carbonate equivalent (LCE) and inferred resources of 590,000 tonnes LCE.
Anson Resources is a mineral explorer and developer focused on uncovering natural resources to power a clean energy future.
Write to Maddison Elliott at Mining.com.au
Images: Anson Resources
