Charger Metals Banks $3.75M and Keeps Door Open to $11M More From Bynoe Sale
Charger Metals banks $3.75 million as Bynoe sale completes
Charger Metals has completed the sale of its Bynoe Lithium Project to Core Lithium’s (ASX: CXO) wholly owned subsidiary Bynoe Lithium Pty Ltd, receiving $3.75 million in cash today. The divestment forms part of a broader transaction structure potentially worth up to $14.75 million, comprising upfront cash, a resource milestone payment, and a capped gross revenue royalty. The sale allows Charger to monetise a non-core Northern Territory asset whilst sharpening its strategic focus on the Lake Johnston Lithium and Gold Project in Western Australia’s Yilgarn Province.
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Deal structure: Cash now, royalty upside later
The transaction comprises three distinct payment components designed to provide immediate capital whilst retaining exposure to future exploration success and production upside at Bynoe.
The $3.75 million completion payment has been received today. An additional $1 million milestone payment becomes payable if an Inferred Mineral Resource Estimate of at least 8 million tonnes grading a minimum 1.0% Li₂O is delineated on and attributable to the area covered by exploration licence EL 30897. Finally, Charger has retained a 1.0% gross revenue royalty on lithium product generated from the project area, capped at $10 million.
| Payment Type | Amount | Trigger |
|---|---|---|
| Completion cash | $3,750,000 | Paid today |
| Milestone cash | $1,000,000 | 8Mt Inferred Resource at ≥1.0% Li₂O on EL 30897 |
| Gross revenue royalty | Up to $10,000,000 | 1.0% of lithium product revenue from project area |
This structure enables Charger to retain exposure to exploration success and production upside without bearing ongoing exploration or development costs. The milestone payment ties additional value realisation directly to resource delineation, whilst the royalty provides participation in revenue generation if the project reaches commercial production.
What is a gross revenue royalty and why it matters here
A gross revenue royalty is calculated as a percentage of top-line revenue before costs are deducted. This differs from net smelter return royalties, which apply after processing and refining costs have been subtracted from revenue. Gross revenue royalties are simpler to calculate and administer, as they avoid disputes over cost allocation and deductions.
In high lithium price environments, a gross revenue royalty can be particularly valuable for the holder, as the royalty percentage applies to the full sale price of lithium product rather than a reduced net figure. The $10 million cap provides certainty on maximum exposure for Core Lithium whilst still offering meaningful upside for Charger if the Bynoe project reaches production. At 1.0% of gross revenue capped at $10 million, the royalty would exhaust once cumulative lithium product sales from the project area reach $1 billion.
Royalty structures allow divesting companies to participate in future production value without capital expenditure, making them an important component when assessing the true exit value of asset sales.
Charger sharpens focus on Lake Johnston lithium and gold
With the Bynoe sale completed, Charger’s portfolio is now concentrated on the Lake Johnston Lithium and Gold Project, located 450km east of Perth in Western Australia’s Yilgarn Province. The project benefits from strategic proximity to established lithium infrastructure and projects in the region.
Lake Johnston sits approximately 180km by road from the Mt Cattlin Lithium Project and just 70km east of the Earl Grey (Mt Holland) Lithium Project. Earl Grey represents one of Australia’s largest hard-rock lithium developments, with Ore Reserves estimated at 189 million tonnes grading 1.5% Li₂O. The project was commissioned by Covalent Lithium Pty Ltd (manager of a joint venture between subsidiaries of Sociedad Química y Minera de Chile S.A. and Wesfarmers Limited) and began production in March 2024.
Lithium prospects at Lake Johnston occur within a 50km corridor along the southern and western margin of the Lake Johnston granite batholith. Key target areas include the Medcalf Spodumene Deposit, the Medcalf West Exploration Target, the Mt Gordon Lithium Prospects, and much of the Mount Day LCT pegmatite field, which is considered prospective for lithium and tantalum minerals.
The Bynoe sale generates non-dilutive capital to advance exploration at Lake Johnston, which is positioned in a proven lithium district with existing infrastructure and processing options nearby.
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What this means for Charger Metals shareholders
The completed transaction delivers immediate balance sheet strengthening whilst preserving optionality for additional value realisation if Core Lithium successfully advances the Bynoe project. The strategic rationale centres on monetising a non-core asset to fund priority exploration at Lake Johnston, where Charger’s exploration efforts are now concentrated.
The deal structure provides shareholders with:
- Immediate cash: $3.75 million received today
- Milestone exposure: Additional $1 million if an 8Mt resource is delineated
- Production upside: 1.0% royalty on lithium revenue, capped at $10 million
- Focus: Capital redirected to Lake Johnston exploration
The transaction allows Charger to maintain leveraged exposure to lithium project development in the Northern Territory through the royalty mechanism, without the ongoing capital requirements and execution risk associated with exploration and development activities. For investors, the sale represents a capital allocation decision favouring concentration on the Lake Johnston asset base over spreading resources across multiple projects.
Charger Metals trades on the ASX under ticker CHR. Core Lithium trades under ticker CXO.
Want to Know How Charger Plans to Deploy Its $3.75 Million at Lake Johnston?
Charger Metals has now exited its Northern Territory asset to concentrate capital on the Lake Johnston Lithium and Gold Project, located in Western Australia’s proven Yilgarn lithium corridor. The strategic shift aims to accelerate exploration in a district already hosting major producers.
For detailed insights into Charger’s exploration strategy and upcoming drill programmes at Lake Johnston, visit the Charger Metals investor centre. Full details of the Bynoe transaction structure and milestone payments are available in today’s ASX announcement.