Rio Tinto Withdrawal Leaves Charger Metals Sole Owner of Key Lithium Asset

Background and Agreement Termination

Charger Metals NL (ASX – CHR) has announced it will retain 100% ownership of its Lake Johnston Lithium and Gold Project following a mutual agreement with Rio Tinto Exploration Pty Limited (RTX) to terminate their farm-in arrangement. Over the past two years, RTX had invested $4.2 million in exploration activities, subscribed for $1.2 million in equity, and paid $1 million in cash to Charger. However, RTX elected to withdraw before completing the required expenditure to earn an initial 51% interest.

Strategic Implications of Ownership Consolidation

This development returns full control of the project to Charger, allowing the company to independently steer exploration and development strategies. While RTX’s involvement accelerated early-stage exploration, Charger’s management expressed confidence in the project’s potential, particularly around the Medcalf Spodumene Deposit and the adjacent Medcalf West Exploration Target. Both areas remain open for resource expansion, with Medcalf boasting an inferred resource of 8.2 million tonnes at 1.0% lithium oxide.

Recent and Planned Exploration Activities

Recent reverse circulation drilling at the Whitten prospect within the Mt Day pegmatite field confirmed significant lithium mineralisation in one of five holes, with assays pending for the remaining holes. The Whitten area is notable for its lithium-caesium-tantalum pegmatites, which are part of a broader lithium-enriched corridor. Charger plans to commence a substantial drilling campaign in January 2026, fully permitted for up to 41 holes targeting extensions of the Medcalf resource and the Medcalf West target. This program aims to delineate further near-surface lithium mineralisation, which is critical for potential future mining scenarios.

Project Location and Market Context

Lake Johnston is strategically located in Western Australia’s Yilgarn Province, approximately 450 kilometres east of Perth and near several operational lithium processing plants. The proximity to established infrastructure and other major lithium projects, such as the Earl Grey (Mt Holland) Lithium Project, enhances the project's attractiveness. Charger’s ability to control the project fully may streamline decision-making and accelerate development timelines amid a competitive lithium market.

Technical Rigor and Compliance

The announcement includes comprehensive technical details on drilling methods, sampling protocols, and assay quality assurance, underscoring the robustness of the exploration results. Industry-standard reverse circulation drilling, rigorous sample preparation, and independent laboratory analysis have been employed to ensure data integrity. The company also maintains heritage protection agreements with local Indigenous groups, reflecting compliance with native title and environmental regulations.