Core Lithium (ASX:CXO) has made a strategic acquisition by entering agreements to purchase 7.6 million shares in Charger Metals (ASX:CHR), amounting to 9.8% of its issued capital.

Core Lithium Acquires Charger Metals Shares

The agreement, set to complete by 20 September 2024, involves Core Lithium issuing 6.08 million of its own shares to Lithium Australia (ASX:LIT). Consequently, Lithium Australia will hold a 0.3% stake in Core.

Core Lithium Expands Interest in Bynoe Project

In a separate pact, Core will purchase Lithium Australia’s 30% stake in the Bynoe Project. This project is situated in the Northern Territory and is surrounded by tenements of Core Lithium’s Finniss Project.

Bynoe Purchase Terms

Core will pay $500,000 for the 30% interest, although Charger Metals retains a pre-emptive right to this stake, potentially purchasing it within a 60-day period.

Lithium Australia Strategy

Lithium Australia CEO Simon Linge states that asset divestment aligns with the company’s long-term strategy to fund ongoing activities. He notes this move enhances liquidity and retains potential upside should a future transaction occur.

Future Developments

Core has allowed Lithium Australia a call option to re-acquire the shares under specific terms, demonstrating flexible potential control arrangements over the next nine months.

Charger Metals, known for exploring battery and precious metals, will continue its projects across Australia, maintaining potential in multiple minerals like nickel and copper.

Conclusion

This acquisition by Core Lithium represents a strategic alignment to bolster their lithium resources and hold substantial influence over promising projects in the region.

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