Anson Resources has secured binding commitments for an amount of A$50m ($33.4m) to be raised from institutional and other investors to help the company expedite the development of the Paradox lithium project in Utah, US.

The mineral resources company, which is listed on the Australian Securities Exchange (ASX), will raise the amount via a single tranche placement.

It aims to reach a final investment decision (FID) on the lithium project in the second quarter of 2023. The company expects to wrap up front-end engineering design work, obtain permits, and place orders for long-lead procurement items by then.

Furthermore, the proceeds from the placement will be used for resource expansion, which includes implementing the company’s western strategy.

The placement will involve Anson Resources issuing 139 million new shares at a price of A$0.36 ($0.24).

Anson Resources executive chairman Bruce Richardson said: “The result of the capital raise is an outstanding endorsement of the Paradox Lithium Project and for ‘made in USA’ battery grade lithium carbonate. We were delighted to price the Placement at a tight discount to the prevailing VWAPs, despite immediately following a significant market downward correction.

“Interest in the Placement far exceeded Anson’s requirements, with Anson upsizing to $50 million to facilitate access to the register for quality investors. The post placement register provides a strong shareholder base upon which to progress the next phase of the Project’s development.”

According to the company, the Paradox lithium project will be developed into a key supplier of high purity battery grade lithium carbonate for the US electric vehicle market.

By utilising direct lithium extraction (DLE) in phase 1 development, the project is expected to process mineral rich sub-surface brine into battery grade lithium carbonate.

Phase 2 of the lithium development project aims to expand the production capacity as well as begin bromine production.