- Charger Metals NL secures a significant binding farm-in agreement with Rio Tinto Exploration, a wholly-owned subsidiary of mining powerhouse Rio Tinto (ASX:RIO), for the Lake Johnston Lithium Project, WA
- Under the terms of the RTX agreement, Rio Tinto contributes $500,000 to Charger and invests an additional $1.2 million before the farm-in begins
- This strategic partnership with Rio Tinto not only underscores the prospectivity of the Lake Johnston Lithium Project but also highlights its potential to host a large-scale lithium deposit
- Additionally, Charger Metals announces a binding agreement with Lithium Australia to acquire its minority interest in the Lake Johnston Lithium Project, positioning Charger at a 100 percent ownership status
- CHR shares are down a staggering 22.4 per cent, trading at 29.5 cents
Charger Metals NL (CHR) has secured a significant binding farm-in agreement with Rio Tinto Exploration (RTX).
RTX is a wholly-owned subsidiary of mining powerhouse Rio Tinto (RIO), for the Lake Johnston Lithium Project in Western Australia’s Yilgarn region.
Despite the positive development, Charger Metals shareholders have yet to respond favourably – shares sunk by as much as 25 per cent in the first hour of trade.
RTX agreement
Under the terms of the RTX agreement, Rio Tinto will contribute $500,000 to Charger and invest an additional $1.2 million before the farm-in begins.
RTX also commits to spending a minimum of $3 million on exploration in the first 12 months.
All in all, Rio can earn up to a 75 per cent interest if it spends $40 million over the coming years.
“The Rio Tinto Exploration farm-in agreement is an excellent result for Charger and its shareholders and reaffirms our belief that the Lake Johnston Project has potential to host a large-scale lithium deposit,” Charger’s Managing Director Aidan Platel said.
This strategic partnership with Rio Tinto, in Charger’s eyes, underscores the prospectivity of the Lake Johnston Lithium Project.
Lithium Australia agreement
Additionally, Charger Metals has announced a binding agreement with Lithium Australia (ASX:LIT) to acquire its minority interest in the Lake Johnston project, this positions Charger at a 100 percent ownership status.
“The Rio Tinto Exploration farm-in agreement will see them potentially spending up to $42.5 million to earn up to a 75 per cent interest in the Lake Johnston Project.” Charger’s Chairman Adrian Griffin said.
“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.”
Key targets of interest
Situated 450km east of Perth, Western Australia, the Lake Johnston Lithium Project boasts lithium prospects within a 50km long corridor along the southern and western margin of the Lake Johnston granite batholith.
Key target areas include the Medcalf Spodumene Prospect, the Mt Gordon Lithium Prospect, and much of the Mount Day LCT pegmatite field, known for its lithium and tantalum mineral potential.
CHR shares are down a staggering 22.4 per cent, trading at 29.5 cents.