Charger Metals Accelerates Lithium Exploration with Rio Tinto Backing and New Drilling

Exploration Momentum at Lake Johnston

Charger Metals NL (ASX: CHR) has maintained a steady pace in advancing its lithium exploration activities during the December 2024 quarter, with a focus on its flagship Lake Johnston Lithium Project in Western Australia. The company completed 10 reverse circulation (RC) drill holes totaling 1,517 meters at the Medcalf and Medcalf West prospects, aiming to better understand the orientation and extensions of spodumene mineralisation. Assay results from this program are anticipated in early February 2025, which could provide critical insights into the project's potential scale and grade.

In parallel, Charger secured permits for a maiden diamond drilling program at the Mt Day Prospect, scheduled to commence in late January 2025. This initiative targets a significant 5.5km by 1.5km pegmatite field exhibiting strong lithium-in-soil anomalies and high-grade rock chip samples, suggesting a promising lithium system. Additionally, the company received approval for RC drilling at the Mt Gordon Prospect, with exploration activities expected to begin within the current quarter following completion of Aboriginal Heritage and environmental surveys.

Strategic Partnership with Rio Tinto

Charger’s exploration efforts at Lake Johnston are substantially supported by Rio Tinto Exploration Pty Ltd (RTX), which is funding the work under a farm-in agreement. RTX has committed to sole funding $10 million in exploration expenditure to earn a 51% interest, with the option to increase to 75% by funding $40 million or completing a Definitive Feasibility Study. To date, RTX has funded $3 million of exploration, including the initial $500,000 reimbursement, underscoring the major miner’s confidence in the project’s prospects.

Bynoe Lithium Project Fully Owned and Positioned for Growth

In the Northern Territory, Charger has consolidated its position by exercising its pre-emptive right to acquire the remaining 30% interest in the Bynoe Lithium Project, bringing its ownership to 100%. This move follows Core Lithium Ltd’s announcement of high-grade lithium mineralisation at the adjacent Blackbeard Prospect, which trends close to Charger's tenement boundary. The company is awaiting updated drilling and exploration permits to advance over 20 identified lithium targets, with environmental surveys underway to support approvals.

While fieldwork remains limited due to the wet season, Charger is actively progressing environmental studies and prioritising targets to prepare for drilling in the next field season. The strategic consolidation and proximity to Core Lithium’s discoveries position Bynoe as a potentially significant lithium hub.

Capital Raising and Corporate Developments

To support its exploration and corporate activities, Charger completed a fully underwritten entitlement offer of partly paid shares, raising $0.77 million during the quarter. The company holds $2.49 million in cash reserves as of December 31, 2024, and maintains a tightly held capital structure with 77.4 million fully paid ordinary shares on issue and a market capitalisation near $5 million. Charger continues to evaluate new opportunities in the battery metals sector, aiming to leverage its exploration momentum and strategic partnerships.

Notably, no substantive mining production or development activities were conducted during the quarter, reflecting the company’s focus on exploration and resource definition at this stage.