Lithium Australia says it will maintain exposure to a triumvirate of quality exploration projects via a joint venture with Charger Metals, which plans to list on the ASX in July on the back of a $6 million IPO set to open this week. The lithium battery player will also emerge as the major shareholder in the new company post-capital raise.
Perth-based Lithium Australia has farmed out 70 per cent of the Coates and Lake Johnston projects in WA and Bynoe project in the Northern Territory to Charger.
According to Charger, significant nickel-copper-PGE geochemical anomalies occur at the Coates project about 60km east of Perth in the northern sector of the south-western Yilgarn Craton.
It says the area warrants further exploration to test targets that are situated about 30km south-east of Chalice Mining’s exciting Julimar discovery.
Several interpreted mafic-ultramafic units have been identified in the tenement block collectively referred to as the Coates mafic intrusive complex, which Charger suggests shows geophysical similarities with the Julimar complex.
At the Lake Johnston lithium and gold project near Southern Cross, reconnaissance geological mapping and geochemical sampling have identified lithium-caesium-tantalum pegmatites and a stacked spodumene pegmatite cluster at the Bontempelli Hill prospect, Lithium Australia says.
Rock chip samples from the spodumene pegmatite outcrop average 3.6 per cent lithium oxide, according to the company.
The Bynoe lithium and gold project area near Darwin lies in an emerging lithium province and is surrounded by Core Lithium’s extensive tenement holdings taking in its developing Finnis lithium project.
Finnis hosts a measured, indicated and inferred resource of 14.7 million tonnes at an average grade of 1.32 per cent lithium oxide.
Lithium Australia Managing Director, Adrian Griffin said: "The company retains significant exposure to battery minerals and potential supply solutions while maintaining a focus on its core business.”
Eligible Lithium Australia shareholders will be offered a priority allocation of Charger’s stock in the IPO.
Charger has until September 4 to exercise the JV option agreement to acquire stakes of 70 per cent in the three projects.
Consideration payable to Lithium Australia for the transaction is $100,000 cash and 9.6 million Charger shares.
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By Matt Birney
