Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) has announced the sale of its 7.6 million shares in Charger Metals NL to Core Lithium Ltd. This strategic move aligns with the company’s plan to monetize non-core assets to support sustainable lithium production initiatives.

Lithium Australia’s Strategic Divestment

Lithium Australia will receive 0.8 Core share for each Charger share, totaling approximately 6.1 million Core shares. This transaction is valued at A$541,000 based on Core Lithium’s recent trading data.

Bynoe Lithium Project Sale

Apart from Charger shares, the company sold its 30% stake in the Bynoe Lithium Project for A$500,000. This cash deal depends on Charger Metals’ pre-emptive rights.

Enhanced Liquidity

According to CEO Simon Linge, the exchange improves liquidity in Lithium Australia’s holdings. It provides flexibility to pursue growth opportunities while maintaining potential gains from any future Charger Metals transactions.

Alignment with Core Strategy

These transactions support Lithium Australia’s focus on enhancing operations, providing financial agility, and ensuring the balance sheet can accommodate further innovation.

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