Ascent Resources (AST ), the onshore US focused oil and gas company, has highlighted an announcement from Neometals Ltd in regard to the generation of a potash and lithium exploration target for Utah Brine Corporation.
The exploration target ranges from approximately 94 million tonnes to 325 million tonnes of muriate of potash (MOP), and approximately 1.9 million to to 6.5 million tonnes of contained lithium carbonate equivalent.
Utah Brine Corporation holds 100% of the Utah Brine project in the Paradox Basin, south-east Utah, USA, and Neometals has a 51% shareholding interest in Utah Brine Corporation.
In March 2026, Ascent, together with its partners American Helium and affiliates, entered into a binding Access and Use Licence with UBC.
This grants UBC exclusive rights to access and use 24 inactive oil and gas wells, associated leases, infrastructure and the "Covered Acreage" for brine sampling, test work, extraction, processing and related activities.
In consideration, Ascent is entitled to a gross smelter return royalty of 2.5%-to-3.5% of gross revenue from sales of lithium and potassium (potash) products produced from brines extracted within the Covered Acreage by UBC. Ascent is also entitled to 4.9 million options in Neometals, exercisable at 10 cents each.
The royalty provides Ascent with low-risk, non-dilutive exposure to any future commercial production from this key infrastructure area of the project without capital expenditure or operating risk.
Ascent will continue to monitor progress at the Utah Brine Project, including planned brine sampling, metallurgical testwork and resource definition activities, and will update the market on any material developments in due course.
"The definition of a substantial JORC Exploration Target by Neometals underscores the scale and potential of the Utah Brine Project in the Paradox Basin,” said Ascent Resources chief executive Dave Patterson.
“Ascent's royalty entitlement positions us to benefit directly from any future lithium and potash production through existing well infrastructure, without the need for further capital outlay from Ascent. While the target remains conceptual at this early stage, it represents a meaningful development for the long-term value of our royalty interest in this strategically located US critical minerals project."
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This is a useful add-on for Ascent, which comes at no cost. The US remains more than 50% net import reliant for lithium and 92% net import reliant for potash, so there will certainly be local demand for any resource that is delineated. If production does eventually go ahead, the cash flow to Ascent from the royalty could be substantial and will certainly be useful, providing support to Ascent as it continues with its own exploration and development efforts in the US.