Charger Metals, an ASX-listed minerals company, has announced a significant development in its Lake Johnston lithium project in Yilgarn, Western Australia. The company has reached a farm-in agreement with Rio Tinto Exploration (RTX), a subsidiary of mining giant Rio Tinto. As part of the deal, RTX will provide funding for exploration activities in exchange for earning a 51% stake in the project.
Under the terms of the agreement, Charger Metals will receive A$500,000 from RTX to cover exploration expenses. In addition, Charger Metals has agreed to acquire the remaining 30% stake in the project from Lithium Australia for A$2 million. With these transactions, Charger Metals will hold 100% ownership of the Lake Johnston lithium project.
This partnership between Charger Metals and RTX is expected to boost the development and exploration of the lithium project. With RTX’s financial backing, Charger Metals will have the resources needed to accelerate exploration activities and unlock the project’s full potential.
Lithium is a key component in the production of rechargeable batteries, making it an essential element in the rapidly growing electric vehicle market. The Lake Johnston lithium project is strategically located in Western Australia, a region known for its abundant lithium resources. By securing full ownership of the project and partnering with RTX, Charger Metals positions itself to play a significant role in the global lithium market.
1. What is a farm-in deal?
A farm-in deal is an agreement between two companies, where one company provides funding for exploration or development activities in exchange for earning an ownership stake in a project.
2. Who is Charger Metals?
Charger Metals is an ASX-listed minerals company focused on the exploration and development of various metal projects, including lithium.
3. What is the significance of the Lake Johnston lithium project?
The Lake Johnston lithium project is strategically located in Western Australia, a region known for its abundant lithium resources. Lithium is a key component in rechargeable batteries, making the project valuable in the growing electric vehicle market.