Utah Backs Anson Resources’ Green River Lithium Development with Proposed US$357.7m Incentive

Anson Resources (ASX: ASN) has received a letter of advice from the Economic Development Corporation of Utah confirming financial support for the company’s Green River lithium project and recognising the contribution it could make to US critical minerals production.

The letter outlined US$357.7 million in proposed state and local incentive programs including US$127.75m of tax reimbursements over 20 years and US$229.9m from the Utah Inland Port Authority’s (UIPA) share of incremental property-tax revenue generated within the project area over 25 years.

A subsidy of up to 50% of approved workforce training costs would also be available to Anson and it would receive assistance in establishing student, apprenticeship, and workforce development pipelines.

The final value of the support programs is subject to final terms approved by the relevant government authorities, the level of investment made, assessed property values, and taxes generated by the Green River project.

Impact on Project Economics

Final determinations are expected in September and approved incentives will be included in the Green River definitive feasibility study to assess their impact on project economics and long-term competitiveness.

Anson considers a tax reimbursement of up to 50% would increase the project’s after-tax cash flows, improve the internal rate of return, and reduce financing requirements, while bonding support through the UIPA would potentially reduce the need to raise additional capital for infrastructure to support the project’s development.

Executive chair Bruce Richardson said the letter of advice reflected Green River’s position as one of North America’s most advanced lithium brine developments.

“These proposed incentive programs recognise the significant long-term investment, skilled employment and economic activity that Green River is expected to generate in Utah,” he said.

“In particular, the ability to apply potential UIPA support to critical infrastructure could provide meaningful assistance as we advance the project toward development.”

Building Utah’s Economy

EDC Utah is a non-profit, public-private partnership focused on building the local economy by creating jobs and increasing capital investment throughout the state.

The organisation has confirmed it is eager to assist Anson through customised research and its network of more than 200 government and industry partners capable of providing construction, engineering, equipment financing, transportation and logistics, staffing, utility, and insurance services.

EDC Utah said Anson represented the type of high-value company it seeks to support in Utah, with Green River expected to deliver investment in critical minerals, innovative extraction technologies, and employment opportunities to the region.

“The incentives have the potential to reduce Green River’s capital intensity and long-term tax burden and combined with existing financing initiatives, they reinforce our strategy of minimising shareholder dilution while strengthening project economics,” Mr Richardson added.

New Mineral Rights

Anson has also won a bid to acquire new mineral rights immediately beneath the Green River and nearby state parks administered by the Utah Division of Forestry, Fire, and State Lands.

The new tenure comprises eight leases over 4.76 square kilometres of highly prospective lithium rich brines and joins the east and west claim areas, reflecting a 5.4% increase in the project’s total acreage.

Leases 1 to 4, which sit within Green River’s Indicated resource estimate, will be included in a future update while the remaining leases are within the Inferred resource area of interest.

The leases that abut the project’s Bosydaba #1 and Mt Fuel-Skyline Geyser wells are within areas of known lithium-rich saturated brines that previously had no recorded historical assays until the completion of Anson’s recent drilling programs.

The wells are separated by approximately 12 kilometres with both having similar geological formations and a similar supersaturated brine composition reported to be “very clean” compared to other lithium-rich brines, allowing it to be processed at a lower cost.