The Lake Johnston lithium project in WA has a new owner, with Charger Metals purchasing Lithium Australia’s remaining 30 per cent interest in the operation.
The sale increased Charger’s interest in Lake Johnston to 100 per cent, with Charger paying $2 million for the stake.
Lithium Australia said the sale will allow the company to focus on its core operations of battery recycling, lithium chemicals and battery minerals.
“Lithium Australia also retains a first right of refusal for offtake for up to 30 per cent of lithium produced by the Lake Johnston lithium project, providing a path to future lithium access to be applied in the commercial production,” Lithium Australia said.
“The cash proceeds of the transaction, coupled with the company’s 9.6 million shares held in Charger, strengthen Lithium Australia’s balance sheet, placing it in a stronger position to meet its growth objectives.”
The sale satisfies the final condition of Charger’s farm-in agreement with Rio Tinto Exploration (RTX), a subsidiary of Rio Tinto.
Under the agreement, RTX will pay Charger an additional $500,000 and will spend a minimum of $3 million of exploration expenditure at Lake Johnston in the first 12 months.
The Lake Johnston project is located 450km east of Perth, in the central part of major lithium resource area Yilgarn Lithium Province.
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