Ascent Resources (LSE:AST) has a 2.5%–3.5% gross smelter return (GSR) royalty after Neometals defined a maiden JORC exploration target for the Utah Brine Project in the Paradox Basin.
Ascent, the onshore US focused oil and gas company, said it entered a binding Access and Use Licence in March 2026 that grants Utah Brine Corporation exclusive rights to access 24 inactive oil and gas wells, associated leases, infrastructure and the Covered Acreage for brine sampling, test work, extraction and processing.
"The definition of a substantial JORC Exploration Target underscores the scale and potential of the Utah Brine Project, and Ascent's royalty positions us to benefit without further capital outlay," Dave Patterson, CEO of Ascent Resources, said.
In consideration for the licence Ascent is entitled to a GSR royalty of 2.5% to 3.5% of gross revenue from lithium and potassium products produced from brines within the Covered Acreage, the exact rate to be determined by the timing of any final investment decision, and 4.9m unlisted options in Neometals exercisable at A$0.10 each for three years.
Neometals holds a 51% shareholding interest in Utah Brine Corporation, which holds 100% of the Utah Brine Project.
Ascent said the royalty gives it low‑risk, non‑dilutive exposure to any future commercial production and that it will monitor planned brine sampling, metallurgical testwork and resource definition activities and update the market on any material developments.
