Lithium Australia shareholders offered priority allocation in Charger Metals

Lithium Australia NL (ASX:LIT) (OTCMKTS:LMMFF) (FRA:3MW) shareholders are being offered a priority allocation in the upcoming Initial Public Offering of Charger Metals NL. The company has a joint venture agreement with Charger, which has an option to acquire LIT exploration projects that include Coates and Lake Johnston projects in Western Australia and Bynoe Project in the Northern Territory. With the Charger prospectus now lodged with ASIC, eligible LIT shareholders as at June 3, 2021, are offered priority to subscribe for $500,000 at $0.20 per share. Retains 30% interest Lithium Australia retains a 30% interest in the exploration projects and will be the major shareholder in Charger. Eligible shareholders are encouraged to submit a LIT Offer Application Form as soon as possible after the opening date on June 4, 2021. The Charger Prospectus is an electronic prospectus that may be accessed on Charger’s website at www.chargermetals.com.au with the closing date currently set at 5pm WST on June 17, 2021. “Significant exposure” Lithium Australia managing director Adrian Griffin: “The company retains significant exposure to battery minerals and potential supply solutions while maintaining a focus on its core business – that of ensuring an ethical and sustainable supply of energy metals to the battery industry via the creation of a circular battery economy.” LIT has granted Charger an option to acquire a 70% interest in exploration projects. Coates Project The Coates project is in the highly prospective Western Yilgarn nickel/copper/platinum group elements (PGE) belt about 20 kilometres southeast of Chalice Mining Ltd’s (ASX:CHN) Julimar discovery. This discovery, which has attracted strong interest in this new exploration province, is developing rapidly as drilling progresses. Coates project exhibits geology similar to the Chalice discovery, with geochemistry results from an adjacent tenement returning encouraging nickel, copper, PGE and gold anomalies, which few previous explorers successfully identified, providing the motivation to further explore this target. Bynoe Project The Bynoe lithium and gold project tenement is surrounded by the extremely large tenement holdings comprising Core Lithium Ltd’s (ASX:CXO) Finniss Lithium Project near Darwin in the Northern Territory. This is reported as having a total mineral resource inventory of 14.7 million tonnes at 1.32% lithium oxide, of which 7.6 million tonnes are in the measured and indicated mineral resource categories. Finniss is at a very advanced stage of development, with a definitive feasibility study completed in April 2019. Lake Johnston Project At Lake Johnston, reconnaissance geological mapping and geochemical sampling identified a number of lithium-caesium-tantalum (LCT) pegmatites and the discovery of a spodumene pegmatite cluster at Bontempelli Hill near Lake Medcalf in WA. Bontempelli Hill outcrops consist of stacked pegmatites containing around 20-30% spodumene. Rock-chip samples from the pegmatite dyke swarm average 3.6% Li2O, with up to a maximum 7.15% Li2O from spodumene outcrop. The mineralised pegmatites at this prospect outcrop over an area of 450 x 250 metres with soil sampling and geology indicating possible extensions to the southeast under adjacent cover. Individual dykes range from about 20 to 120 metres in length and 1 to 5 metres in thickness and there has been no drilling on any of the lithium targets.