Anson (ASX:ASN) shares skyrocket 38% today; is this the reason?

Highlights:

• Anson has entered an MoU with a lithium extraction technology provider, Sunresin, for its Paradox Lithium Project.
• Paradox Lithium Project is the core asset of Anson and the company is focused on developing it into a significant lithium producing operation.
• On the back of today’s release, the share price has surged by 38%.

Shares of Anson Resources Limited (ASX:ASN) are heading north on ASX today (25 August 2022) after the company shared that it has inked an MoU (Memorandum of Understanding) with Sunresin New Materials Co Ltd. for a long-term commercial and strategic alliance for Paradox Lithium project, located in Utah, USA.

Sunresin is a global lithium extraction technology provider engaged with Anson since 2019 for the Paradox Lithium Project.

At 12:02 PM AEST, the shares of Anson were trading 38.10% higher from its previous close at AU$0.28 apiece with market capitalisation of AU$215.86 million.

About the MoU between Anson and Sunresin

In a statement, Anson said, it conducted an extensive assessment of lithium extraction technologies before selecting Sunresin as its technology partner for the Paradox brines.

As per the MoU’s terms, Sunresin would offer technical support services, innovations, consumables and equipment to Anson for developing, designing, building, operating and optimising the DLE (Direct Lithium Extraction) technology for producing battery-grade lithium carbonate at the Paradox project. Anson would also enjoy access to Sunresin’s supply chain of technical support networks and distribution centres across Europe and Asia. Also, Sunresin would offer support, technology updates and innovations during the life of the project.

Image source: © Vladthefool | Megapixl.com

Anson to produce the cleanest lithium carbonate in the United States

Commenting on the MoU with Sunresin, Bruce Richardson, executive chairman, Anson, said that DLE technology would assist the group in meeting its goal of producing the cleanest and high quality lithium carbonate in the US.

According to the release, Sunresin technology is likely to lead to:

• No requirement for pre-treatment,
• Use of water instead of chemicals to wash lithium from resin,
• 5% is the estimated lithium DLE recovery.

About Sunresin

Sunresin is a global lithium extraction technology provider engaged with Anson since 2019 for the Paradox Lithium Project. The company has more than ten years of experience in lithium extraction and has been involved in nine full-scale commercialised DLE projects.