Lithium Australia NL (ASX:LIT) (OTCMKTS:LMMFF) (FRA:3MW) has granted an option for Charger Metals NL to acquire part of the company’s Australian exploration assets as a part of its strategy to offload non-core exploration plays to focus on battery supply chains.
Charger Metals NL is a special purpose unlisted public exploration company recently incorporated to buy interests in precious metals and battery minerals projects in Western Australia and the Northern Territory.
Lithium Australia grants Charger an option to acquire exploration projects including:
- The Coates Mafic Intrusive Complex (Wundowie Project), prospective for nickel, copper and platinum group elements (PGEs), hosted in a mafic intrusion in the highly prospective Western Yilgarn emerging Ni-Cu-PGE belt 28 kilometres south-east of Chalice Mining Limite’' (ASX:CHN) (OTCMKTS:CGMLF) Julimar discovery in Western Australia;
- The Lake Johnson Project, near Southern Cross, Western Australia which is prospective for lithium, gold and nickel; and
- The Bynoe Project, prospective for lithium and gold, Darwin, Northern Territory.
Lithium Australia retains a significant 30% interest in each project and significant share interest in Charger post its initial public offer.
The transaction enables Lithium Australia to enhance focus on its core business to ensure an ethical and sustainable supply of energy metals to the battery industry.
The Coates Mafic Intrusive Complex location
The Coates Mafic Intrusive Complex
The Coates Mafic Intrusive Complex is approximately 28 kilometres southeast of the recent nickel-copper-platinum group elements (Ni, Cu, PGE) discovery at the Julimar Project by Chalice Gold Mines (ASX:CHN), which has generated significant interest in a new exploration province.
The Coates Mafic Intrusive Complex exhibits similar geology to Chalice Gold Mines’ Julimar discovery.
Lake Johnston Lithium and Gold Project
Reconnaissance geological mapping and geochemical sampling have identified several LCT (lithium-caesium-tantalum) pegmatites, and the discovery of a spodumene pegmatite cluster at Bontempelli Hill near Lake Medcalf, Western Australia.
The Bontempelli Hill outcrops consist of stacked pegmatites, containing around 20-30% spodumene and the mineralised pegmatites at this prospect outcrop over an area of 450 x 250 metres.
Soil sampling and geology indicate possible extensions to the southeast under adjacent cover and to date there has been no drilling on any of the lithium targets.
Bynoe Lithium and Gold Project
Bynoe Lithium and Gold Project occur within the Litchfield Pegmatite Belt, a geological zone that hosts LCT pegmatites, that extends 180 kilometres in a southerly direction from Darwin Harbour.
The project has a history of tin mining and is prospective for tantalum and alkali metals, with the company’s project being immediately adjacent to the Core Lithium Limited’s Finnis Lithium Project.
A review of work undertaken by previous tenement holders has generated 9 areas with geochemical vectors for lithium mineralisation.
Terms of the Agreement
The company has granted Charger Metals NL an option to acquire a 70% interest in tenements that are unencumbered, and 100% of one encumbered tenement.
The consideration payable to Lithium Australia by Charger is $100,000 for reimbursement of previous exploration expenditure incurred on the tenements and 8.8 million ordinary shares of Charger.
LIT is also entitled to receive $200,000 cash and 2.75 million shares upon the establishment of:
- Inferred resource of 10,000 tonnes containing nickel equivalent; or
- Inferred resource of 10 million tonnes at 1.2% lithium oxide; or
- Inferred resource of 100,000 ounces at +2g/t gold equivalent.