Lithium Australia announces sale of Charger Metals shares and Bynoe Lithium Project interest

Lithium Australia Ltd (ASX:LIT) has signed an agreement with Core Lithium Ltd. (ASX:CXO) to sell its remaining 7.6m shares in Charger Metals NL (ASX:CHR) and its remaining 30% interest in the Bynoe Lithium Project. The agreement entails receiving 0.8 CXO share for every 1 CHR share, equating to approximately 6.1m CXO shares for the remaining 7.6m Charger Metals shares held, with a consideration of A$541k based on CXO's 5 day volume weighted average trading price (VWAP) as at 6 September 2024.

Lithium Australia CEO and Managing Director, Simon Linge, on the agreement

Divesting of non-core assets to fund ongoing activities has been our strategy for a number of years and we are pleased to realize value for our Charger shares and project assets. The exchange of the Charger Metals shares into Core Lithium shares provides us with improved liquidity in our investment holdings, which can be freely sold. In addition, our agreement with Core also allows the Company to retain any upside on a potential Charger transaction in the near future.

Summary of Lithium Australia's agreement with Core Lithium

Lithium Australia (ASX:LIT) has finalized an agreement with Core Lithium Ltd. (ASX:CXO) to sell its remaining shares in Charger Metals NL (ASX:CHR) and its 30% interest in the Bynoe Lithium Project. The exchange involves receiving 0.8 CXO share for every 1 CHR share, providing improved liquidity in investment holdings. The agreement also includes a Control Event clause, allowing Lithium Australia to capture any upside from a potential qualifying takeover event for Charger Metals in the next 9 months. These transactions align with Lithium Australia's strategic focus on its existing operations and provide balance sheet flexibility for key growth initiatives.