Core Lithium Changes Strategy for Charger and Bynoe, Enters Deals with Lithium Australia

Core Lithium (ASX:CXO,OTC Pink:CXOXF) announced on Monday (September 9) that it has entered into two separate and discrete agreements with Lithium Australia (ASX:LIT,OTC Pink:LMMFF).

Through the first agreement, Core will acquire 7.6 million Charger Metals (ASX:CHR) shares currently held by Lithium Australia. According to the company, the purchase must be completed before September 20.

Once it goes through, Core will own approximately 9.8 percent of Charger's shares.

---

Under the second agreement, Lithium Australia will sell Core its 30 percent stake in Charger's Bynoe lithium project for AU$500,000 in cash. Located in the Northern Territory, Bynoe is enclosed by Core's Finniss lithium project.

Through its joint venture with Lithium Australia, Charger has the right to purchase the 30 percent interest in Bynoe for 60 days. Core won't be able to take ownership of the stake if Charger exercises that right.

Core's moves come after it made an unsolicited, non-binding indicative offer to acquire Charger Metals in mid-August. Charger made the proposal public against Core's wishes, saying it didn't reflect the company's value.

For its part, Lithium Australia said the transactions with Core align with its strategic focus.

“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,” noted CEO and Managing Director Simon Linge.

Core's acquisition offer for Charger has expired, and the company said it now is willing to remain a strategic investor.

“Equally, Core remains open to discussing the progression of its (non-binding indicative offer) with Charger should Charger’s board be willing to do so in a constructive manner," it states in its release.

Charger has shared Core's announcement on its website, but has not yet made any other comments.

Don’t forget to follow us @INN_Australia for real-time news updates!

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

https://ift.tt/LQOPn2U