West Perth-based Anson Resources has received commitments to raise $50 million as it works towards making a final investment decision for its flagship project in Utah.
West Perth-based Anson Resources has received commitments to raise $50 million as it works towards making a final investment decision for its flagship project in Utah.
Anson’s Paradox lithium brine project is the company’s core asset, with proceeds from the raising to fund front-end engineering design work, permitting and ordering of long lead procurement items, among other development activities.
The company is working towards a final investment decision for Paradox in the second quarter of the 2023 calendar year.
New Anson shares were offered to investors at 36 cents apiece, a slim discount of 3.9 per cent on its 10-day volume weighted average price.
Anson said the placement - which was led by Sydney broker Petra Capital - had to be upsized to accommodate for ‘significant demand’ from institutional investors.
“We were delighted to price the placement at a tight discount to the prevailing VWAPs, despite immediately following a significant market downward correction,” Anson executive chairman Bruce Richardson said.
Another 139 million shares will be added to Anson’s register once settled and alloted, which is expected later this month.
BurnVoir Corporate Finance was financial adviser to Anson.
Mr Richardson added that the capital raise was an ‘outstanding’ endorsement of the Paradox project.
“The post placement register provides a strong shareholder base upon which to progress the next phase of the project’s development.”
Anson shares were down 6.59 per cent to trade at 40 cents.
