Core Lithium has entered into two separate agreements, which will see it purchase of 7.6 million shares in Charger Metals and acquire a 30 per cent free carried interest in Charger’s Bynoe Lithium Project from Lithium Australia.
The share purchase represents 9.8 per cent of Charger’s shares on issue. The purchase price payable by Core is 0.8 Core shares for each Charger share, being the issue of 6.08 million new Core shares.
The purchase of Charger shares must occur before 20 September 2024. Upon completion, Core will own approximately 9.8 per cent of Charger shares on issue, and Lithium Australia will hold a 0.3 per cent shareholding in Core.
The separate agreement will see Core purchase Lithium Australia’s 30 per cent interest in Bynoe, subject to certain conditions precedent. Bynoe is an exploration licence in the Northern Territory, surrounded by tenements that are part of Core’s Finniss Project. Charger owns the remaining 70 per cent of Bynoe.
Under the terms of Charger and Lithium Australia’s joint venture agreement (JV) for Bynoe, the 30 per cent interest Core has agreed to acquire is free carried and requires no expenditure by LIT until Charger completes a definitive feasibility study. Until that time, 100 per cent of the costs incurred in relation to Bynoe, including exploration costs, are to be borne by Charger.
The purchase price for the acquisition of the 30 per cent interest in Bynoe is $500,000 in cash.
Lithium Australia’s CEO and Managing Director, Simon Linge, said divesting of non-core assets to fund the company’s ongoing activities has been its strategy for several years.
“We are pleased to realise value for our Charger shares and project assets.
“The exchange of the Charger Metals shares into Core Lithium shares provides us with improved liquidity in our investment holdings, which can be freely sold.
“In addition, our agreement with Core also allows the company to retain any upside on a potential Charger transaction in the near future.”
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