Charger (ASX:CHR) bring in the cash for Lake Johnston LithiumDecember 12, 2023 Off By Rueben Hale
Charger Metals has met the funding conditions under its binding farm-in agreement with Rio Tinto Exploration and stands ready to hammer into its now fully owned Lake Johnston Lithium Project in the new year.
Charger now expects a convertible loan funding of $1.2 million to be in the coffers this week alongside $500 thousand next month as it prepares a comprehensive campaign for 2024.
The Rio deal came alongside a binding agreement with Lithium Australia to purchase their minority interest and become the full owner of Lake Johnston and heavy support for a $2.7M Placement to get drilling in a region abuzz with high profile discoveries.
The Medcalf Spodumene Prospect looks to be first off the rack, but three samples yielding high grades 4.2, 3.7, and 3.5 per cent with visible spodumene crystals estimated to be up to half of the total volume have now offered up a third spodumene-bearing outcrop lying across a 1.2-kilometre trend.
Charger Managing Director Aidan Platel said the Rio farm-in agreement was an excellent result, and validation that its Lake Johnston Project has the potential to host a large-scale deposit.
“The planned significant investment by RTX will allow thorough systematic exploration over the entire project tenure, with initial exploration focused on fast-tracking the Medcalf Spodumene Prospect as well as progressing the Mt Day and Mt Gordon lithium prospects,” Mr Platel said.
“The RTX farm-in agreement and recent placement ensures Charger will be well funded going forward with only ~73 million shares on issue.”
Charger Chairman Adrian Griffin added the Rio agreement would see them potentially spending up to $42.5 million to earn up to 75% in Lake Johnston.
“The largely unexplored Lake Johnston Greenstone belt now hosts multiple spodumene discoveries and with the recent focus and increasing exploration activity could evolve into a prominent lithium province,” Mr Griffin said.
And there is more to come at Charger’s Bynoe Lithium Project in the Northern Territory, with more than 25 targets now being systematically tested in a well-known lithium enriched belt just seven kilometres northbound of Core Lithium’s Finniss Project.
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