Anson Resources Banks $3.85M From POSCO as Utah Lithium Demo Plant Kicks Off
Anson banks first US$2.7M tranche from POSCO as Utah lithium plant kicks off
Anson Resources has received its first tranche payment of ~A$3.85 million (USD 2.7 million) from South Korean industrial giant POSCO Holdings under a binding Direct Lithium Extraction (DLE) Demonstration Plant Agreement. The payment forms part of a ~AUD $7.2 million (USD $5.2 million) facilitation fee tied to the construction and operation of a DLE demonstration facility at the Green River Lithium Project in Utah’s Paradox Basin.
The non-dilutive cash inflow validates Anson’s technology pathway and funding strategy. POSCO will lead and fund the demonstration plant at its own expense, while Anson provides site access, infrastructure, and brine supply.
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Inside the POSCO Demonstration Plant Agreement
The agreement positions POSCO as project lead while Anson receives facilitation payments without equity dilution. The deal structure centres on a demonstration facility designed to validate DLE technology at commercial scale ahead of potential full-scale development.
Key terms include:
- POSCO responsible for design, construction, operation and maintenance
- Anson provides access to property, infrastructure and brine supply
- Brine supplied from Bosydaba #1 well with defined performance targets
- 4,135 m² site agreed for the plant plus temporary storage, office and laydown areas
- Preparatory civil works underway connecting utilities to the POSCO plant site
| Item | Key Terms |
|---|---|
| Project | Non-commercial DLE Demonstration Plant – Green River Lithium Project |
| Responsibility | POSCO bears cost for design, construction, operations & maintenance |
| Facilitation Fee | USD $5.2M |
| Term | To December 2028 |
| Brine Supply | Bosydaba #1 well with defined performance targets |
The project timeline follows two critical phases:
- POSCO to commence plant operation in 2027
- Test work completion expected in 2028
What is Direct Lithium Extraction — and why POSCO matters
Direct Lithium Extraction refers to a process that extracts lithium directly from brine using selective absorption or chemical processes.
POSCO’s involvement carries significant validation weight for Anson’s technology pathway.
POSCO’s battery materials credentials include:
- Leading South Korean industrial group across steel, energy and battery materials
- Building a global EV supply chain
- Invested in ~93,000 tonnes of annual lithium production across Argentina and South Korea
- Advancing proprietary DLE technologies
POSCO’s decision to lead the demonstration plant may lead to other forms of cooperation between the two companies. For investors, a globally significant strategic partner funding and operating the facility de-risks Anson’s technology pathway while preserving shareholder equity.
A funding strategy built to protect shareholders
Anson has developed a financing philosophy centred on obtaining funds that do not dilute existing shareholders, limiting equity and loan funding wherever possible. This strategy has been in development for several years.
The facilitation fee aligns with this strategy while at the same time providing an opportunity for the validation of its test work by POSCO.
Non-dilutive funding avenues being pursued include:
- Government grants & loans (US Department of Energy programmes applied for)
- Strategic investment
- Offtake agreements with pre-payment
- Other financial instruments
The two companies will continue to explore potential business cooperation opportunities, including joint investment in the Project, as outlined in the MoU Agreement. This positions the demonstration plant as a potential gateway to deeper strategic partnership rather than a standalone testing arrangement.
Anson’s strategy for the financing of the development of the project is to identify and obtain funds, wherever possible, that do not dilute existing shareholders and limit equity and loan funding of the project.
The funds received under the agreement will be used to advance development of the Green River Lithium Project, including the Definitive Engineering Study expected to be completed in January 2027.
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What’s next for the Green River Lithium Project
With the first tranche received and civil works underway, Anson’s focus shifts to completing the Definitive Engineering Study (DFS) while POSCO advances plant construction.
The development roadmap follows this sequence:
- Major government permits already obtained
- Definitive Engineering Study (DFS) expected complete January 2027
- DFS is the next step to finalise project funding
- POSCO demonstration plant operating in 2027, test work complete 2028
- Pathway toward Final Investment Decision (FID)
The convergence of non-dilutive funding, completed permitting, and strategic validation through POSCO’s demonstration plant positions the DFS as the critical near-term catalyst. The study will finalise project economics and funding requirements ahead of a potential Final Investment Decision.
For investors, the tranche payment represents the first material cash inflow from a strategic partnership structure designed to fund development milestones without equity dilution. POSCO’s willingness to fund and operate the demonstration facility validates Anson’s technology approach whilst positioning both parties for potential deeper cooperation.
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