Lithium Australia Ltd (ASX: LIT) managing director and CEO Simon Linge joins Jonathan Jackson in the Proactive studio to discuss an agreement with Core Lithium Ltd. (ASX: CXO) to sell its remaining 7.6 million shares in Charger Metals NL and its 30% interest in the Bynoe Lithium Project.
Under the agreement, Lithium Australia will receive 0.8 Core Lithium shares for each Charger Metals share, totalling approximately 6.1 million Core Lithium shares, valued at A$541,000 based on the volume-weighted average price over five days. The received shares will be freely tradable without any escrow restrictions.
Additionally, the agreement includes a clause allowing Lithium Australia to benefit from any takeover event of Charger Metals within nine months. If such an event occurs, Lithium Australia retains the right to repurchase the shares from Core Lithium and sell them into the transaction, potentially capturing additional value.
Separately, Lithium Australia has agreed to sell its 30% interest in the Bynoe Lithium Project to Core Lithium for A$500,000, contingent on Charger Metals not exercising its pre-emptive rights. These transactions align with Lithium Australia's strategy of divesting non-core assets to fund its ongoing operations.
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