Charger Metals NL has raised $1.35 million through a well-supported placement to fund extensive drilling at its Lake Johnston Lithium and Gold Project, targeting promising new discoveries and resource expansion.
- Placement raised $1.35 million at $0.115 per share
- Strong backing from institutional and sophisticated investors
- Funds to support ~3,000m diamond and RC drilling program
- Focus on Xmas Gold Discovery and Medcalf Lithium Deposit
- Plans underway for metallurgical testing and permitting
Funding Boost for Exploration
Charger Metals NL (ASX, CHR) has successfully secured $1.35 million through a placement of approximately 11.7 million new shares priced at $0.115 each. The placement attracted strong support from institutional and sophisticated investors, most of whom are existing shareholders, underscoring confidence in the company’s exploration strategy at the Lake Johnston Lithium and Gold Project.
Alongside $914,000 received from calls on partly paid shares earlier in January, Charger is now well positioned financially to advance its next phase of exploration and resource expansion drilling.
Targeting High-Grade Gold and Lithium
The fresh capital will fund a planned ~3,000-metre diamond and reverse circulation (RC) drilling program. This program aims to follow up on the recent high-grade Xmas Gold Discovery, where initial drilling intercepted 12 metres at 6.55 grams per tonne gold from 132 metres, including a standout 4 metres at 16.9 grams per tonne. Notably, the discovery area remains largely under-explored, with over 2 kilometres of strike untested by drilling.
In parallel, drilling will also target the Medcalf Lithium Deposit and the Medcalf West Exploration Target. The Medcalf deposit holds promise for resource growth, with the company planning metallurgical testwork next month and fast-tracking permitting efforts to support potential future development.
Strategic Outlook and Next Steps
Charger’s Managing Director Bryan Dixon highlighted the company’s enthusiasm about the drilling campaign, emphasizing the potential to expand both gold and lithium resources. The proximity of four lithium concentration plants within trucking distance adds logistical appeal to the Medcalf deposit’s development prospects.
The new shares issued under the placement will rank equally with existing shares, with settlement expected on 2 February 2026. The company’s focus now turns to executing the drilling program and advancing metallurgical studies, which will be critical in defining the scale and quality of the mineral resources.
While the funding and drilling plans mark a significant step forward, the inherent uncertainties of exploration remain. The conceptual nature of some targets means that further work is needed to confirm resource potential and economic viability.
Bottom Line?
Charger Metals’ fresh capital injection sets the stage for a pivotal drilling phase that could reshape its resource profile and market standing.
Questions in the middle?
- Will the upcoming drilling confirm and expand the high-grade gold zones at Xmas Gold Discovery?
- How might metallurgical test results influence the development timeline for the Medcalf Lithium Deposit?
- What are the potential risks if exploration results fall short of current expectations?