Suspended battery metals miner Core Lithium ‘disappointed’ as Charger Metals reveals $6.5 million offer

Battery minerals explorer Charger Metals says it has been approached with a $6.5 million scrip proposal from Core Lithium, which closed its Finniss mine earlier this year and tightened its belt amid the commodity downturn. Charger told the ASX on Monday that Core Lithium had been among a “number of companies” expressing an interest in buying the company, comprising of its Lake Johnston project in the Yilgarn and Bynoe lithium project in the Northern Territory. Core’s Finniss mine is currently idled in the NT after prices took a downward turn shortly after the mine got up and running. It also already owns about 500sqkm of the Bynoe pegmatite field. The target — whose market capitalisation rocketed to over $6 million after disclosing the approach to the market — said the non-binding indicative offer of 0.9 Core shares for every one Charger share “did not fully reflect the company’s value”. But Charger said it was still “open to continuing engagement” with Core. Core was then forced into an abrupt trading halt before confirming it had made a “confidential non-binding indicative proposal” on July 25, noting its disappointment the offer had been outed. Core also said it had not been provided full due diligence access to Charger. “Core is disappointed Charger chose to release details of its Proposal, notwithstanding that it was clearly stated to be confidential. It was subject to several conditions, including due diligence, and is therefore incomplete,” Core said. “Core believes there are strong synergies between its Finniss operations and Charger’s Bynoe Lithium Project, given their locations.” Nontheless, Core said it was still interested in the possibility of a “mutually beneficial transaction” called for the board of Charger to engage “constructively” with Core. The company’s chief executive Paul Brown, who replaced Gareth Manderson in March, has been focused on keeping Finniss “restart ready” and pitching the company as being “ideally positioned for a market recovery”. In July Mr Brown said a restart of Finniss would “only occur when we are confident the lithium market conditions support such a decision” but added the company would stay “agile and prepared” for external future opportunities. Charger bought up a remaining minority stake in the Lake Johnston lithium project from Lithium Australia in November 2023, and signed a farm-in agreement with Rio Tinto at the same time. Charger Metals shares were up more than 19 per cent on the news to 8.1¢. Core Lithium last changed hands at 9.3¢.