It's a good day to be invested in ASX lithium share Anson Resources Ltd (ASX: ASN). The company revealed a major milestone at its Paradox lithium project this morning.
It has achieved "another significant step forward on the path to production", according to Anson Resources executive chair and CEO Bruce Richardson, as the company unveiled a water rights agreement for its flagship lithium brine project in the US state of Utah.
The stock is soaring on the back of the news. Right now, the Anson Resources share price is 5.56% higher at 19 cents.
Let's take a closer look at the latest news from the ASX lithium share.
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ASX lithium share soars on water agreement
The Anson share price is rocketing on Monday as the company gets one step closer to kicking off production at the project it describes as being on the doorstep of Tesla Inc (NASDAQ: TSLA).
It's signed a sub-lease agreement with Green River Companies, which is in turn approved by the Wayne County Water Conversancy Board.
That will see the ASX lithium company leasing more water than is expected to be needed to run its planned 13,000 tonnes per annum lithium carbonate equivalent plant.
Commenting on the news driving the ASX lithium share higher, Richardson said:
Water is an essential part of the lithium production and while the current process flow sheet allows for approximately 80% of the water used to be recycled, additional water needs to be added.
We are delighted that Anson has been able to successfully negotiate this agreement … which further demonstrates the support that the project continues to receive from the local and state governments.
The agreement is for an initial 23 years and carries the option to extend for another 20 years.
It was initially signed in October. However, conditions, including a $1 million payment from Anson Resources' subsidiary A1 Lithium Inc, have now been completed.
Today's gain sees the Anson Resources share price 5.6% higher than it was at the start of 2023. It has also gained 46.2% since this time last year.
It's joined in the green by many of the ASX's biggest lithium stocks today.
The share price of Pilbara Minerals Ltd (ASX: PLS), for instance, is currently up 6.04%. Meanwhile, that of Core Lithium Ltd (ASX: CXO) has gained 4.45%.
