Charger Faces Exploration Risks Despite Rio Tinto Funding and Bynoe Acquisition

Strategic Partnership Fuels Exploration Momentum

Charger Metals NL (ASX: CHR) has leveraged its partnership with Rio Tinto Exploration Pty Limited (RTX) to maintain robust exploration activity at its flagship Lake Johnston Lithium Project in Western Australia. Under the 2025 farm-in agreement, RTX is sole funding a $1.1 million drilling program targeting priority prospects including Mt Day, Mt Gordon, and Pagrus. This funding arrangement enables Charger to advance exploration countercyclically amid subdued lithium prices, preserving shareholder capital while progressing resource definition.

The recent drilling at Medcalf West has delivered encouraging results, with assays confirming high-grade lithium mineralisation, highlighted by an 11m intersection at 1.80% Li2O, including 7m at 2.13% Li2O. These results build on previous diamond and RC drilling campaigns that have delineated stacked spodumene-bearing pegmatites over significant strike lengths and depths, with mineralisation remaining open for expansion.

Gold Potential Emerges at Mt Gordon

Beyond lithium, Charger has identified compelling gold targets within the Mt Gordon tenement. Historic drilling has returned high-grade gold intercepts such as 5m at 7.15 g/t Au, including 2m at 16.36 g/t Au, located near significant structural features. The company has applied for drilling permits to test these targets, signaling a strategic diversification into gold exploration that could add value to its portfolio.

Bynoe Lithium Project Acquisition Strengthens Battery Metals Position

In a notable corporate development, Charger exercised its pre-emptive right to acquire the remaining 30% interest in the Bynoe Lithium Project in the Northern Territory from Livium Limited for $0.5 million, securing 100% ownership. The Bynoe Project, situated near Core Lithium’s Finnis Mine, hosts multiple lithium prospects with confirmed lithium and tantalum mineralisation. This acquisition consolidates Charger’s footprint in a highly prospective lithium province and aligns with its growth ambitions in battery metals.

While fieldwork at Bynoe is currently limited due to the wet season, the company has secured updated environmental approvals and is prioritising targets for future drilling campaigns. The proximity to Core Lithium’s high-grade Blackbeard Prospect, which recently reported 63m at 1.67% Li2O, underscores the project’s potential.

Financial Position and Outlook

Charger ended the quarter with $1.78 million in cash, supported by ongoing payments from RTX under the farm-in agreement. The company’s tightly held capital structure, with 77.4 million shares outstanding and a market capitalisation of approximately $3.3 million, positions it to continue advancing exploration and evaluating new opportunities in gold and battery metals.

Looking ahead, Charger plans to execute further drilling at Lake Johnston, including 1,480m at Mt Day and 3,120m at Mt Gordon, subject to permitting and weather conditions. The company’s strategy of partnering with a major like Rio Tinto while expanding its project base through acquisitions like Bynoe reflects a balanced approach to growth in a competitive sector.