Why are Core Lithium shares outperforming on Monday?

Core Lithium Ltd (ASX: CXO) shares are outperforming on Monday morning.

At the time of writing, the lithium miner's shares are flat at 8.3 cents.

This compares to a 1% decline by the ASX 200 index in early trade.

What's going on with Core Lithium shares?

The company's shares are performing better than most today after it announced a couple of interesting investments.

According to the release, Core Lithium has entered into separate agreements with Lithium Australia Ltd (ASX: LIT) in relation to Charger Metals NL (ASX: CHR) and the Bynoe Project.

Core Lithium has agreed to acquire 7.6 million Charger Metals shares held by Lithium Australia. The purchase price is the issue of 6.08 million new Core Lithium shares, which equates to 0.8 shares for each Charger Metals share.

Completion of the purchase must occur before 20 September. At completion, Core Lithium will own approximately 9.8% of Charger Metals shares on issue and Lithium Australia will hold a 0.3% shareholding in Core Lithium.

Interestingly, Core Lithium has granted Lithium Australia a call option to re-acquire the Charger Metals shares should a prescribed control event occur within nine months. This will be with an offer ratio that exceeds 0.8 Core Lithium shares for each Charger Metals share.

Bynoe Project

In a separate agreement, Core Lithium has agreed to purchase Lithium Australia's 30% interest in the Bynoe Project for $500,000.

It is an exploration licence in the Northern Territory, which is surrounded by tenements that are part of Core Lithium's existing Finniss Project. Charger Metals owns the remaining 70% of the Bynoe Project.

The release notes that the 30% interest Core Lithium has agreed to acquire is free carried and requires no expenditure until Charger Metals completes a definitive feasibility study.

Until then, 100% of the costs incurred in relation to Bynoe Project, including exploration costs, are to be borne by Charger Metals.

These agreements follow the confidential non-binding indicative offer (NBIO) proposed by Core Lithium for the potential acquisition of Charger Metals by way of a scheme of arrangement that was announced in August.

That offer was ultimately rejected by Charger Metals' Board. Though, it is worth noting that even with these agreements in place, "Core remains open to discussing the progression of its NBIO with Charger should Charger's board be willing to do so in a constructive manner."

But it also stated that "in the present circumstances, without access to due diligence information and subject to the actions of Charger or third parties, Core has no current intention to make a takeover offer for Charger."