Core Lithium has responded to Charger Metals’ suggestion that Core had tabled an “unsolicited, non-binding” offer to acquire the company.
Core said it was “disappointed” Charger chose to release details of the proposal, which, according to Core, was framed as a merger of the two companies.
Core made a confidential offer to merge with Charger on July 25, through an all-share transaction, proposing that Charger shareholders receive 0.9 Core shares for each Charger share. The offer represented a 47.5 per cent premium from Charger’s last closing price before the proposal.
Core said it had met with Charger to discuss initial terms of the proposal and subsequently offered an increase in the share consideration.
Core said the proposal was clearly marked as confidential and was still subject to several conditions, including due diligence and final agreement on terms.
“Core is disappointed Charger chose to release details of its proposal, notwithstanding that it was clearly stated to be confidential,” Core said.
Despite the leak, Core remains open to exploring the potential benefits of a merger, believing it could deliver significant synergies between its Finniss operations and Charger’s Bynoe lithium project, both in the Northern Territory.
Core holds a mineral resource of 48.2 million tonnes at 1.26 per cent lithium oxide, putting it in the top 10 lithium resources in Australia, alongside a production-ready mine. In combination with Charger’s exploration potential, Core believes this can give Charger shareholders enhanced exposure to the lithium market and access to the Core’s established resources.
Core stated it has yet to be provided full due diligence access to Charger’s assets and urged Charger to engage more constructively and provide the necessary information to move discussions forward.
While Core remains interested in pursuing a mutually beneficial outcome, it stressed that there is no guarantee a binding offer will be made and no certainty that any deal will be made.
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