AFR: Anson Resources in $45m share placement


Listed lithium play Anson Resources was fronting investors with a $45 million share placement on Thursday morning to fund exploration work at its Utah project.

Anson had Petra offering shares at 36¢ each, a 15.3 per cent discount to the last close and 3.9 per cent lower than the 10-day volume weighted average price.

The term sheet sent to potential investor said it would use the money for long-lead items ($18 million), FEED and permitting ($12 million) working capital ($10 million), and reserve and resource expansion ($5 million).

Its Paradox lithium project in Utah has a mineral resource of 1,0005Mt brine with 788kt of lithium carbonate and 3523kt bromine. Anson reckons the phase one definitive feasibility study would have a $US495 million capex, which could be paid back in two years.

It’s said it has a proven direct lithium partner in Sunresin and is targeting big US automakers and cell-makers for offtakes.

Petra Capital was the sole lead manager and bookruner. It called for bids by 3pm Sydney time on Thursday.

Anson Resources had a $438 million market capitalisation, and $5.7 million cash.

Extract Source: The Australian Financial Review