Anson signs binding offtake agreement

Exploration company Anson Resources has signed a binding offtake term sheet with South Korea-based LG Energy Solution.

Under the agreement, LG Energy will purchase 4,000 dry metric tonnes of battery grade lithium carbonate per year from Anson's Paradox Basin lithium project, located in the American state of Utah.

The initial five-year supply term will begin on July 1 2027, and can be extended by an additional five years if mutually agreed upon by both parties. Pricing throughout the tenure will be subject to the prevailing lithium carbonate market price.

West Perth-based Anson told the market that the agreed offtake amount represented 40 per cent of the project's predicted production capacity of 10,000 tonnes per annum.

"This establishes the foundation for a long-term partnership and we are proud that we will be supplying US made lithium from the Paradox Basin to LG Energy Solution - a respected global leader in the lithium battery value chain, building out the largest battery manufacturing capacity in the US," Anson executive chair and managing director Bruce Richardson said.

During its March 2024 quarterly report, Anson said it had completed its geotechnical engineering study at Paradox Basin, which confirmed conditions were suitable for construction of the proposed processing plant's foundations. 

In May last year, Anson told the market it had increased the size of its project area at Paradox Basin by 28 per cent to 214 square kilometres. 

Anson, which has both lithium and uranium interests, closed trade at 11.5 cents per share, up 10 per cent.