KEY POINTS
- Anson targets up to 6,000 t/y of lithium offtake.
- Xcelsior will assess financing options.
- Green River could start production in 2029/30.
Anson Resources has signed a memorandum of understanding with metals trader Wogen Resources and financing adviser Xcelsior Capital Advisors to advance potential offtake and funding arrangements for its Green River lithium project in Utah.
The ASX-listed company said the MoU covers a potential long-term offtake arrangement for between 2,000 tonnes and 6,000 tonnes a year of lithium carbonate equivalent from Green River.
The proposed initial agreement would run for five years, with the possibility of increasing supply volumes and extending the duration of the arrangement.
The potential agreement gives Anson an early commercial pathway for its planned lithium production, while allowing Wogen to assess the project and its future output as part of its specialist metals trading activities.
The companies will undertake further work before any definitive offtake agreement is concluded.
Financing options also under review
Xcelsior Capital Advisors will assess potential investment and financing support for the Green River project.
Possible structures include debt financing, product prepayment, strategic investment and other funding arrangements that are acceptable to the parties.
The financing discussions are significant for the project’s development because Anson’s planned production remains dependent on securing the capital required to move through construction and commissioning.
Anson expects Green River to begin production in 2029 or 2030, although the timeline remains subject to development, financing, permitting, construction and commissioning.
Parties to assess project and product
Under the MoU, Anson, Wogen and Xcelsior will review technical information and representative product samples from the project.
The parties will also conduct lithium carbonate product testing and qualification as part of the process of assessing the potential offtake arrangement.
Further evaluations will cover logistics, infrastructure and the costs associated with delivering the lithium product to customers.
The companies will also examine potential financing structures before negotiating one or more definitive agreements.
Anson executive chairperson and CEO Bruce Richardson said the MoU marked an important step in developing the commercial and financing pathways for Green River.
He said Wogen brings experience in the international marketing and trading of specialist metals and minerals, while Xcelsior contributes financing and capital markets expertise focused on the critical minerals sector.
The partnership therefore brings together potential product marketing and financing capabilities as Anson advances the Green River project toward development.
The MoU does not yet constitute a final offtake or financing agreement, but provides a framework for the parties to assess the project and negotiate potential long-term arrangements.
