Can Anson Overcome Drilling Challenges to Expand Its Lithium Resource?

Green River Lithium Project Drilling Restart

Anson Resources has received regulatory approval to commence a modified drilling program at its Mt Fuel–Skyline Geyser Well in Utah, USA. The revised plan involves sidetracking the existing wellbore using a whipstock to reach an expected depth of approximately 9,800 feet. This approach follows the discovery of unexpected steel and other materials blocking the original wellbore at around 500 feet, which halted the initial re-entry program. The sidetracked well will enable Anson to collect brine samples and geological cuttings from multiple target horizons, supporting the expansion and upgrading of its JORC-compliant lithium resource estimate.

Offtake Agreement and Strategic Partnerships

In a significant commercial development, Anson signed a definitive offtake agreement with Nusano for the purchase of 300 dry metric tonnes per annum of high-purity lithium chloride from the Paradox Basin project. This volume represents about 3% of the project's planned initial production capacity of 10,000 tonnes per annum. Offtake agreements like this are crucial milestones that underpin the company’s pathway towards securing debt funding at the final investment decision stage.

Meanwhile, technical and commercial cooperation with South Korean conglomerate POSCO Holdings Inc continues to progress positively. Multiple engineering teams from POSCO have conducted site visits and detailed assessments of the Green River demonstration plant, infrastructure, and brine supply. Senior management engagements have further aligned both parties on development objectives, reinforcing POSCO’s ongoing evaluation of the project’s potential.

Capital Raising and Financial Position

To support its ambitious development plans, Anson successfully completed a $14 million placement with sophisticated investors during the quarter. The capital raise included two-for-one attaching options, which have since been listed on the ASX. This injection of funds bolsters the company’s balance sheet, with cash on hand reported at $14.1 million at the end of December 2025. Additionally, Anson maintains an unused $30 million equity placement facility, providing further financial flexibility.

Reflecting prudent financial management, the company has achieved a 28% reduction in average quarterly payroll expenses and a 27% cut in administrative costs over the past two years. These savings have been realised while retaining a streamlined core team focused on advancing the Green River Lithium Project.

Broader Project Portfolio and Exploration Plans

Beyond lithium, Anson continues to progress its diversified portfolio. At the Yellow Cat Vanadium/Uranium Project in Utah, the company has optimised access routes and drill pad locations for an upcoming exploration drilling program aimed at upgrading historical mineral resources to JORC standards. Similarly, at the Ajana Base and Precious Metals Project in Western Australia, planning is underway for drilling programs to expand zinc-lead-silver mineralisation at the Surprise Deposit and test additional prospects.

Community engagement remains a priority, exemplified by an MoU signed with Utah State University to develop a specialised lithium workforce training program. This initiative addresses local skill shortages and supports sustainable economic benefits in the region.

Outlook and Next Steps

Anson’s immediate focus will be on executing the revised drilling program at Mt Fuel–Skyline Geyser Well and advancing assay results that could substantively increase the lithium resource base. Concurrently, the company will continue to deepen its strategic partnerships and progress permitting and engineering studies for the Green River Project. These developments position Anson to capitalise on growing demand for lithium and critical minerals amid global supply chain shifts.