Anson Resources announced that the Wayne County Water Conservancy Board, State of Utah, US, has approved its water rights sub-lease agreement with Green River Companies.

The agreement was signed in October 2022 to procure water required for the operation of its 13,000tpa LCE production plant at its proposed Paradox lithium project in Utah.

It was signed for an initial period of 23 years, with an option to extend for an additional 20 years.

The agreement is subject to approval by Utah’s Wayne County Water Conservancy Board, and $1 by A1 Lithium, and both conditions are now met, said Anson.

Anson Resources executive chairman and CEO Bruce Richardson said: “This is yet another significant step forward on the pathway to production at our planned 13,000tpa LCE plant that the Company plans to construct at the Paradox Lithium Project.

“Water is an essential part of lithium production and while the current process flow sheet allows for approximately 80% of the water used to be re-cycled, additional water needs to be added.

“We are delighted that Anson has been able to successfully negotiate this Agreement with Green River Companies with the support of Wayne County Conservancy District, State of Utah, which further demonstrates the support that the Project continues to receive from the local and State governments.”

The Wayne County Conservancy District, State of Utah has originally leased the water in 2005, and subsequently transferred the rights to Green River Companies in 2012.

The currently approved agreement allows Anson to apply for additional water rights, with the changes in its production requirements.

Anson said that the amount of water under the sub-lease exceeds the expected water consumption of its planned LCE plant at the project.

The company seeks to divert water from the Colorado or Green rivers in Utah, subject to the approval of the location of the diversion points and can be used for industrial purposes.