Anson Resources (ASX:ASN) has confirmed its receipt of a Letter of Interest (LOI) from the USA’s export-import bank to the tune of US$330M (A$482M).
For the uninitiated: Anson is an ASX-listed lithium explorer based in the US.
In May this year, the company inked a binding offtake deal with LG Energy Solution, and then just this month, authorities in Utah effectively gave the environmental approval greenlight for the company to proceed.
Anson’s news on Tuesday was the most watched on HotCopper 45 minutes ahead of the opening bell; users were mostly positive on the news – especially given the Export-Import Bank of the US (EXIM) is a government agency.
In a sentence, EXIM is a funding arm of the US in general that sees its mission as securing US jobs and competing with foreign governments. In turn, HotCopper users interpreted the development as a sign of confidence in not only Anson Resources, but, the US lithium market broadly.
EXIM’s LOI, while non-binding, ultimately provides a pathway towards the construction of a lithium production plant in the Paradox Basin in Utah, USA – closeby Anson’s extractive operations.
Any US$330M payment would be offered as a bank loan with a repayment obligation; Anson noted on Tuesday EXIM has adopted a “Make More in America” initiative – pointing towards geopolitical labour market trends also a potential boon to the project.
(On its website, EXIM runs with the headline slogan, “Helping American Businesses Win The Future.”)
“The United States seeks to develop a domestic and reliable source of critical minerals and the Paradox Basin, which we believe is the largest source of lithium in the United States, has a significant role to play,” Anson CEO Bruce Richardson said on Tuesday.
“Our [Direct Lithium Extraction] technology will produce one of the most environmentally friendly sources of lithium globally.
“This will support the development of the new energy economy, from electric vehicles to drones and defence.”
ASN last traded at 7.7cps.
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