Anson Resources (ASX:ASN) has entered into an agreement to purchase the Green Energy Lithium Project, located in the Paradox Basin in south-eastern Utah, from Legacy Lithium Corp.
Anson, which has a $196.93 million market capitalisation, says the project has ‘strong’ potential to deliver an increase to the existing JORC Mineral Resource Estimate (MRE) at its Paradox Lithium Project without the need for further drilling.
Under the agreement, Anson proposes to acquire the project from Legacy for a consideration of US$1 million in cash and about 15,060,981 ordinary ASN shares.
The transaction is subject to Legacy shareholder approval, in accordance with the requirements of corporation laws and securities laws applicable to Legacy.
The Green Energy Lithium Project contains 18 historical oil and gas wells, with 3 of these wells having recorded lithium values of 173 parts per million (ppm) in Clastic Zone 31, 134ppm in Clastic 19, and 81ppm in the Mississippi Units.
The project acquisition increases the Paradox Lithium Project landholding by 8% to a total of about 231.35km-square. The project comprises 208 placer claims over a total area of 16.85km-square.
Anson says the purchase is expected to increase the size of its exploration target by 14%
Further, Anson says the purchase is expected to increase the size of its exploration target by 14%.
Anson Resources is a junior mineral resources company with a portfolio of mineral projects in key demand-driven commodities. The company’s core asset is the Paradox Lithium Project in Utah, US.
On 31 March 2023, the company had $42.6 million cash at hand, according to its latest quarterly report published on 28 April 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Anson Resources Ltd
