Anson Resources has signed an agreement with Legacy Lithium to acquire the Green Energy Lithium Project in the Paradox Basin in south-eastern Utah, the US.
The acquisition will consolidate Anson’s Paradox Lithium Project area by increasing the total land holding by 8% to 231.35km2.
Under the terms of the agreement, Anson will acquire all the placer claims that constitute the Green Energy Lithium Project for $1m in cash and 15,060,981 ordinary shares in the company.
The completion of the transaction is subject to Legacy Lithium shareholders’ approval. The closing date of the agreement is slated to be five business days after all conditions are met.
Once the deal closes, Anson will pay the cash amount and issue one-eighth of the freely tradeable consideration shares to Legacy. The remaining shares will be released to Legacy in equal instalments after six, 12, 18 and 24 months from the closing date.
Anson executive chairman and CEO Bruce Richardson said: “Negotiations with Legacy Lithium to acquire this strategic important property began in 2023. It is extremely pleasing that these negotiations have been successful as the addition of the Legacy claims forms one large contiguous block of over 230km2 of claims of the Paradox lithium rich brines and at the same time eliminates any potential dispute over ownership of the lithium that to be extracted.
“It is expected that the JORC resource will increase as the area of interest is extended over the purchased claims, upon completion of the Conditions Precedent, providing more project value to Anson shareholders.”
The acquired project features 208 placer claims over a total area of 16.85km2. It has 18 historic oil and gas wells, of which three have recorded lithium values.
Additionally, the previous owners of the Green Energy Lithium Project have submitted a Plan of Operation (POO) and an Application to Drill (APD) with the Bureau of Land Management and the Utah Department of Oil, Gas and Minerals (UDOGM) respectively to re-enter the Cane Creek Fed 11-1 well.
The data from the historic wells will be used to upgrade the Mineral Resource estimate at the consolidated Paradox Lithium Project.
Anson will also use the data in the development of the flow model for the Paradox Lithium Project currently underway.
