According to Charger, the offer from Core values the company at AU$0.084 per share, or AU$6.5 million, which equates to a 23 percent premium on Charger’s closing share price last Friday (August 16).
The company’s board believes the offer doesn’t “fully reflect the Company’s value and prospects,” but is willing to keep engaging with Core with the intention of pursuing the best outcome for Charger shareholders.
“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,” the release states.
The company also said it hasn’t received full due diligence access from Charger.
Core’s interest in Charger is driven by potential synergies between its 500 square kilometre Finniss lithium project and Charger’s Bynoe lithium project, both of which are located in Australia’s Northern Territory.
Core notes that it has resources of 48.2 million tonnes at 1.26 percent Li2O2, giving it one of Australia’s top 10 lithium resources. It also has an existing mine with the infrastructure needed to restart production. Core believes that combining its holdings with the exploration potential at Bynoe will benefit shareholders of both companies.
Bynoe spans 63 square kilometres within the lithium-rich Litchfield pegmatite field, and is about 35 kilometres southwest of Darwin. Charger completed three diamond drill holes and 66 reverse-circulation drill holes across seven prospective target areas at the site in 2023, with more than 20 identified lithium prospects yet to be drill tested.
Like Charger, Core remains interested in continuing talks, but urged Charger’s board to “engage constructively.”
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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