- Charger Metals (CHR) is looking to take full ownership of the WA-based Lake Johnston project from joint venture partner Lithium Australia (LIT)
- CHR has signed a binding deal to snap up LIT’s 30 per cent stake in the project, which is currently owned in a joint venture between the companies
- Under the deal, Charger will issue Lithium Australia seven million shares and potentially grant it the offtake first right of refusal
- The company expects the agreement to be complete by May 31 and is currently drilling at the Medcalf spodumene discovery
- CHR shares are up 4.88 per cent to trade at 43 cents and LIT shares are down 6.12 per cent to 4.6 cents at 12:43 pm AEDT
Charger Metals (CHR) is taking steps to own a 100 per cent interest in the Lake Johnston project in Western Australia.
The company has signed a binding agreement with joint venture partner Lithium Australia (LIT) to buy out its 30 per cent stake in the Lake Johnston project. Charger already owns the remaining 70 per cent.
This would give Charge full ownership over the mineral rights for the Medcalf tenements and all of the lithium rights for the nickel tenements, including the Mt Day lithium-caesium-tantalum (LCT) pegmatite field.
“With drilling at the Medcalf spodumene discovery returning very promising pegmatite intersections, Charger is pleased to have reached an agreement with Lithium Australia to increase its project equity to 100 per cent for lithium discoveries throughout the Lake Johnstone lithium project,” Charger Metals Managing Director David Crook said.
The acquisition consideration involves the issue of seven million CHR shares and the potential granting of the offtake first right of refusal to Lithium Australia. The offtake first right of refusal covers lithium product to an agreed offtake amount.
To qualify for the first right of refusal, Lithium Australia must make a financial investment decision before December 31, 2029, to construct a commercial facility to produce lithium metal phosphate cathode powders.
Charger has completed 27 of the planned 40 drill holes at the Medcalf discovery, and drilling is ongoing.
The agreement will be complete subject to certain conditions that are expected to be met by May 31.
CHR shares were up 4.88 per cent to trade at 43 cents at 12:43 pm AEDT. Lithium Australia shares were down 6.12 per cent to 4.6 cents.