Charger Metals A$6 million IPO Closes Oversubscribed
Lithium Australia NL’s (ASX: LIT) sale and joint-venture terms with Charger Metals NL (ASX: CHR) are now unconditional.
Under the agreement, Charger has an option to acquire a number of exploration projects from Lithium Australia:
- The Coates project, located in the highly prospective Western Yilgarn nickel/copper/platinum group elements (Ni-Cu-PGE) belt, is close to the Julimar discovery of Chalice Mining Limited in Western Australia and exhibits very similar geology.
- The Lake Johnston project, near Southern Cross in Western Australia, which is prospective for lithium, gold and nickel and has outcropping lithium (spodumene) pegmatites.
- The Bynoe project, near Darwin in the Northern Territory, which is prospective for lithium and gold and proximal to recent discoveries of both commodities.
“Lithium Australia retains significant exposure to raw materials through its equity in Charger, as well as its free-carried project interests,” Lithium Australia Managing Director, Adrian Griffin, said.
“The latter potentially provide access to raw materials that the Lithium Australia group of companies can further process. Charger Metals’ specialised expertise will expedite a focused exploration effort, leaving Lithium Australia to concentrate on its core business: the ethical and sustainable supply of energy metals to the battery industry and the development of a circular battery economy. We eagerly await exploration outcomes at the Coates, Bynoe and Lake Johnston projects.”
As part of the JV agreement, Charger Metals has successful closed an A$6 million offer closed oversubscribed and has received conditional approval to list from the ASX.
Charger has now exercised its option to acquire a 70% interest in the three projects. Lithium Australia will receive A$100,000 cash and 9,600,000 fully paid ordinary shares in Charger, valued at A$1.92 million, within five business days.
Lithium Australia shareholders received priority offer to subscribe for $500,000 in the Charger IPO at $0.20 per share. Both the priority offer and the IPO closed oversubscribed.
Mr Griffin said Charger Metals is well advanced with its exploration planning for all three of the above-mentioned projects.
For further information please visit: https://lithium-au.com/
