SYDNEY: Charger Metals NL announced Friday it has signed a binding agreement to sell its 100% ownership of the Bynoe Lithium Project in the Northern Territory to a subsidiary of Core Lithium Ltd. for consideration worth up to 14.75 million Australian dollars.
The deal includes A$3.75 million in cash payable at completion, an additional A$1 million contingent on reaching a resource milestone of at least 8 million metric tons at a minimum grade of 1.0% lithium oxide, and a capped 1% gross revenue royalty of up to A$10 million.
The Bynoe project covers 63 square kilometers and sits just 9 kilometers from Core Lithium’s Finnish Processing Plant, where Core recently resumed mining. Charger Managing Director Bryan Dixon said the project has natural synergies with Core’s existing operations.
“With lithium concentrate prices increasing over 300% in 12 months, we believe strategic groups are currently valuing lithium projects at higher values than other investors, which will see further mergers and acquisition in the Australian lithium market,” Dixon said.
Completion of the sale is subject to approval from the Northern Territory minister under the Mineral Titles Act, a condition the company expects to satisfy within two months.
Following the sale, Charger said it will focus on advancing its Lake Johnston Lithium Project in Western Australia, located about 450 kilometers east of Perth. That project sits near the Earl Grey deposit, one of Australia’s largest hard-rock lithium operations, which began production in March 2024.
Core Lithium’s wholly owned subsidiary, Bynoe Lithium Pty Ltd., will acquire the project, including exploration license EL 30897 and associated mining information and core samples.
The company cautioned that forward-looking statements in the announcement are subject to risks including exploration uncertainty, commodity price volatility, currency fluctuations, and regulatory changes.
Charger Metals is listed on the Australian Securities Exchange under the ticker CHR. Core Lithium trades under CXO.
