Charger Metals have moved to full ownership of Lake Johnston Lithium, making the deal with Lithium Australia as drilling continues at the project lying near the world class Earl Grey deposit east of Perth.
The move provides Lithium Australia the opportunity to quickly convert its investment and grow recycling and cathode powder subsidiaries while maintaining rights for Lake Johnston lithium chemicals.
Drilling continues to spin at Lake Johnston’s Medcalf Prospect and its cluster of 20 outcropping spodumene pegmatite dykes with assays up to 7.15 per cent lithium oxide, and the deal is now struck for the remaining 30 per cent interest in a recently expanded project.
And for Lithium Australia, it now has in hand the ability to further grow its battery-focused divisions as it continues to lead the charge on the nation’s lithium-ion industry.
Charger said with encouraging results ongoing, it was pleased to have made the move to full ownership.
“With drilling at the Medcalf Spodumene Discovery returning very promising pegmatite intersections, Charger is pleased to have reached agreement with Lithium Australia to increase its project equity to 100% for lithium discoveries throughout the Lake Johnston Lithium Project,” managing director David Crook said.
Lithium Australia said with a primary focus on battery recycling and commercialisation of cathode powders, converting its investment into listed equity ensured successes at Lake Johnston could be quickly realised to advance core projects.
“A key risk for LFP production is the availability of lithium chemicals, which have the potential to become scarce as demand increases for EVs in the future. Importantly, this Acquisition Agreement maintains the Company’s rights for lithium chemicals from the Lake Johnston Lithium Project,” chief executive Simon Linge said.