- 01Anson seeks UIPA approval for Green River infrastructure district.
- 02Bonds may fund works without share dilution.
- 03Financing remains subject to approvals.
Anson Resources’ (ASX: ASN) US subsidiary A1 Lithium has submitted an application to the Utah Inland Port Authority (UIPA) to sponsor the creation of a public infrastructure district (PID) for the state’s Green River direct lithium extraction project to produce 10,000 tonnes per annum lithium carbonate—more than double current the nation’s current lithium output.
The application is a formal step toward establishing a dedicated public financing vehicle that could issue bonds for eligible public infrastructure required to support development.
Subject to further approvals and definitive documentation, future tax differential revenues may be pledged to the PID to support debt service, allowing a portion of the value expected to arise over time to be accessed upfront for infrastructure construction.
Anson confirmed that bond proceeds could be used for public infrastructure supporting Green River’s development.
Possible projects include internal roads, secondary containment and related civil works, domestic water networks, sewage and wastewater system upgrades, a dedicated electrical substation, and a potential rail system with loading and unloading facilities, related civil works, and power line relocation.
Local Business Incentive
The UIPA board has previously approved a performance-based business recruitment incentive for Green River equal to 50% of the tax differential received by UIPA, capped at US$193.99 million over a maximum term of 25 years.
The incentive is contingent on completion and continued operation of the project and compliance with the requirements of a definitive incentive agreement signed with the Economic Development Corporation of Utah in September.
If approved and successfully financed, the new PID could provide an additional source of funding for essential project infrastructure without the need for capital raising by Anson.
The bond issue has been described as non-dilutive, as it would not involve the issue of Anson shares for that portion of project capital expenditures.
Longer-Term Value
Anson chief executive officer Bruce Richardson said submission of the PID application was an important step toward bringing forward part of the long-term value of UIPA’s approved incentive.
“If approved, this could provide material upfront funding for eligible public infrastructure without requiring us to issue additional shares and potentially reducing the equity funding burden while aligning repayment with the future tax value created by the project.”
The amount, timing, and terms of any bond issue are yet to be determined and remain subject to numerous approvals, definitive agreements, statutory processes, and market conditions.
The UIPA is expected to complete its review of Anson’s application before the end of this year.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.