Highlights:
A non-binding Letter of Interest received from the US EXIM Bank for up to US$330M in long term debt financing for the construction of a lithium production plant at the Paradox Basin in Utah, USA.
US EXIM is the official export credit agency of the US Federal Government, whose objectives include strengthening America's Supply Chains through it's “Make More in America” Initiative.
Anson continues to advance development of its globally significant lithium projects located in the Paradox Basin, Utah.
NEWPORT BEACH, CA / ACCESSWIRE / September 23, 2024 / Anson Resources Limited (ASX:ASN) ("Anson Resources" or "the Company") is pleased to announce that its 100% owned US subsidiary, A1 Lithium, has received a non-binding and conditional Letter of Interest (LoI) from the Export-Import Bank of the United States (US EXIM) to provide a debt funding package of up to US$330 million (A$500 million1) for the construction of a lithium production plant in Utah, USA, under the "Make More in America" Initiative.
The LoI from US EXIM represents a material step in Anson's project funding strategy and is recognition of the strong engagement the Company has had with the US Government and with industry partners in the United States.
Anson's Executive Chairman and CEO Bruce Richardson commented:
"We are delighted to receive this Letter of Interest from US EXIM following extensive collaboration with multiple government and industry stakeholders in the United States. This LoI reflects our continued strong development, permitting progress and community engagement efforts in the United States and Southern Utah in particular.
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. Our DLE 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 defense."
Anson's Chief Financial Officer Matthew Beattie commented:
"This LoI reflects the Paradox Project in Sothern Utah's potential to be a major source of new, high paying jobs and stimulate investment in the region. While non-binding, the Company views the LoI as an important step in advancing our project financing plan for the development of our world class Paradox Basin projects. If finalised, the US EXIM facility will make up a substantial portion of the overall funding requirements."
The LoI from EXIM does not represent a financing commitment and is a preliminary step in the formal EXIM application process. The debt financing is subject to the satisfactory completion of due diligence, the negotiation and settlement of final terms, and the negotiation of definitive documentation. There can be no assurance that the debt financing will be completed on the terms as described above or at all. The Company will update the market upon reaching a definitive agreement with US EXIM for funding support.
About the Export-Import Bank of the United States
US EXIM is the official export credit agency of the United States of America. EXIM is an independent Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services.
As published in its 2023 Annual Report, EXIM has current exposure to US$1,476.7 billion in lending across 148 countries around the world. The default rate across the portfolio is 0.98%, reflecting the high standards of credit required to obtain EXIM financing. Furthermore, EXIM's charter requires that it supplement and encourage, not displace, private capital.
ENDS
For further information please contact:
Will Maze
Head of Investor Relations
E: investors@ansonresources.com
Ph: +61 7 3132 7990
www.ansonresources.com
Follow us on Twitter @anson_ir
SOURCE: Anson Resources
View the original press release on accesswire.com
