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- Charger Metals has exercised the option for the acquisition of a 70% stake in Lithium Australia’s three exploration projects.
- Lithium Australia retains a 30% free carried interest in the projects and is a significant shareholder in Charger Metals.
- With AU$6 million offer closed oversubscribed, Charger Metals has received conditional approval to list from the ASX.
- Lithium Australia intends to ensure an ethical and sustainable supply of energy metals to the battery industry while developing a circular economy.
Lithium Australia NL (ASX:LIT) is geared to rivet its attention to developing a circular battery economy as the sale, and joint venture terms with Charger Metals NL (ASX:CHR) now stand unconditional. Notably, Charger Metals has exercised the option for the acquisition of a 70% interest in the Coates, Lake Johnston and Bynoe projects, held by Lithium Australia.
On the other hand, Lithium Australia retains a 30% free carried interest in the exploration projects.
With this backdrop, let us explore the terms of the agreement and the three projects in focus.
On the exercise of the option by Charger, Lithium Australia will receive AU$0.1 million cash. The Company will also be a significant shareholder in Charger Metals with 9,600,000 fully paid ordinary Charger shares, valued at AU$1.92 million.
The shareholders of Lithium Australia have received a priority offer for subscribing AU$0.5 million in the Charger IPO at AU$0.2 per share. The Company advised that the priority offer, and Charger Metals’ AU$6 million IPO closed oversubscribed.
The Coates Mafic Intrusive Complex is situated around 20km southeast of the recent nickel/copper/platinum group elements (Ni-Cu-PGE) discovery at the Julimar project held by Chalice Mining Limited (ASX:CHN). On the back of drilling progress, Julimar has drawn significant interest in the new exploration province.
The Coates project exhibits a very similar geology to that of Julimar. Moreover, there have been encouraging Ni-Cu-PGE and gold anomalies highlighted by geochemistry results from an adjacent tenement. These anomalies were identified by few explorers previously and motivated further exploration of the target.
The Bynoe lithium and gold project tenement (EL30897) is prospective for lithium and gold. The project held by Lithium Australia is surrounded by the extensive Finnis lithium project owned by Core Lithium Limited (ASX:CXO).
At a very advanced development stage, the Finnis project has a definitive feasibility study completed. The project hosts a total mineral resource inventory of 14.7 million tonnes at 1.32% Li2O, with 7.6 million tonnes in the Measured and Indicated Mineral Resource category.
Data Source: LIT update, dated 1 July 2021
The project is prospective for lithium, gold, and nickel. Many LCT pegmatites have been identified from the reconnaissance geological mapping and geochemical sampling of the Lake Johnston area. These LCT pegmatites include a spodumene pegmatite cluster at Bontempelli Hill near Lake Medcalf.
The Bontempelli Hill outcrops contain stacked pegmatites including around 20-30% spodumene, a mineral that is an essential source of lithium.
The mineralised pegmatites at pegmatite dyke swarm (average 3.6% Li2O) outcrop over an area of 450m x 250m. Soil sampling and geology suggest possible extensions to the southeast under adjacent cover. There has been no drilling at any of the lithium targets.
As Charger Metals is well advanced with its exploration planning for all three of the above-mentioned projects, Lithium Australia eagerly awaits the exploration outcomes.
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