Ascent Resources plc and its partner American Helium LLC have signed a binding agreement, allowing a third party to access inactive oil and gas wells on their licences in the Paradox Basin in Utah, USA.
EXPLORATION
The deal with Utah Brine Corporation, a special purpose vehicle set by Australian outfit Neometals Ltd and its US partner Omaha Value Inc, follows the November 2025 option agreement.
Under the exclusive transaction, Utah Brine may utilise 26 existing inactive oil and gas wells, associated leases, infrastructure, transportation corridors, related geological and operational data.
“The primary focus is on brine sampling, technical test work, hydrogeological and metallurgical studies, and potential future extraction of lithium and potash (potassium) from brines hosted in the basin,” said Ascent.
Utah Brine, which stands to own any minerals extracted, will pay an annual access fee of US$200,000 and a permitting fee of up to US$1.9 million.
The company will also pay a gross net smelter return royalty of 2.5% to 3.5% on sales of lithium and potassium products from the brines extracted within the partners’ licence area.
Neometals Ltd will issue to Ascent 4.9m unlisted options, each exercisable at A$0.10 for one fully paid ordinary share in Neometals.
Ascent added that the brines project was subject to exploration, test work, permitting and funding, before an estimate of mineral resources or ore reserves and investment decisions.
“This transaction addresses key US supply vulnerabilities for two designated critical minerals: the US remains >50% net import reliant for lithium and 92% net import reliant for potash,” said chief executive officer Dave Patterson.
“By leveraging existing wells, infrastructure, and data in the highly prospective Paradox Basin, this partnership provides a low-capital, low-risk pathway to evaluate and potentially contribute to enhanced domestic supply-chain resilience.
“It builds on our established asset base, unlocks multi-commodity value from lithium and potash brines without significant upfront costs, and aligns with our strategy of delivering shareholder value through innovative partnerships and diversified opportunities while preserving capital for core activities.”