Charger Metals has completed the unconditional sale of its Bynoe Lithium Project to Core Lithium’s subsidiary for $3.75 million upfront, with further payments tied to resource milestones and a capped royalty. The deal frees capital for Charger’s Lake Johnston lithium exploration and development plans.
- Bynoe Lithium Project sold for $3.75 million upfront plus milestone and royalty payments
- Sale unconditional following Northern Territory ministerial approval
- Additional $1 million payable on delineation of 8Mt @ 1.0% Li2O resource
- 1% gross revenue royalty capped at $10 million included
- Charger refocuses on Lake Johnston lithium drilling and scoping study
Unconditional Sale Unlocks Immediate Cash
Charger Metals NL (ASX:CHR) has officially completed the sale of its 100% stake in the Bynoe Lithium Project to Core Lithium Limited’s (ASX:CXO) wholly owned subsidiary, Bynoe Lithium Pty Ltd. The transaction, initially announced on 19 June 2026, has now become unconditional following the Northern Territory Minister’s approval of the tenement transfer, the sole remaining condition precedent.
With ministerial sign-off secured, Charger expects to receive the $3.75 million cash payment imminently, marking a significant near-term boost to its balance sheet. This upfront consideration forms part of a broader deal valued at up to $14.75 million, which also includes milestone and royalty components.
Milestone and Royalty Structure Adds Upside Potential
Beyond the initial payment, Charger stands to receive a $1 million cash milestone payment contingent on delineating an Inferred Mineral Resource Estimate of at least 8 million tonnes at a minimum grade of 1.0% lithium oxide (Li2O) within the area covered by exploration licence EL 30897. This milestone remains subject to future exploration success and resource definition.
Additionally, Charger will earn a 1% gross revenue royalty on lithium products generated from the Bynoe project area, capped at $10 million. This royalty arrangement offers ongoing exposure to the project’s lithium production upside while limiting long-term revenue uncertainty.
Strategic Refocus on Lake Johnston Lithium Project
Charger’s Managing Director Bryan Dixon emphasised the company’s pivot towards advancing its Lake Johnston Lithium Project in Western Australia. The sale proceeds will underpin a planned 10,000-metre drilling campaign targeting infill and extensional zones at the Medcalf Lithium Deposit, alongside a scoping study and accelerated permitting efforts.
The Lake Johnston project, located approximately 450 kilometres east of Perth in the Yilgarn Province, hosts multiple lithium and tantalum prospects, including the Medcalf Spodumene Deposit and the Mt Gordon prospects. These assets have recently benefited from a 34% resource upgrade and improved metallurgical results, positioning Charger to capitalise on the rising lithium market. The proximity to established lithium operations such as the Earl Grey (Mt Holland) project further enhances its strategic value.
Bynoe Project’s Location and Industry Context
The Bynoe Lithium Project sits within Core Lithium’s Finniss Lithium Project corridor in the Northern Territory, just 9 kilometres from Core’s Finniss Concentration Plant where mining operations recently resumed. This adjacency underscores Core’s strategic interest in consolidating lithium assets in the region and leveraging existing processing infrastructure.
For Charger, divesting Bynoe allows a sharper focus on its Western Australian lithium portfolio, where it aims to leverage recent exploration momentum and resource growth to drive value creation.
Bottom Line?
Charger’s completed sale of Bynoe provides immediate capital and a clear runway to accelerate development at Lake Johnston, though future payments hinge on exploration success and lithium market dynamics.
Questions in the middle?
- Will Charger meet the resource milestone to trigger the $1 million payment from Bynoe’s sale?
- How will the capped 1% royalty from Bynoe lithium production translate into revenue over time?
- Can Charger’s Lake Johnston drilling and scoping study deliver a resource upgrade to underpin project development?