Join our daily newsletter At The Bell to receive exclusive market insights
Chariot Corporation (ASX:CC9) has a three-phase plan to establish small-scale lithium mining in Nigeria that the Australian explorer says will take it all the way to near-term production and cash flow production.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
Disclaimer: This content has been prepared as part of a partnership with Chariot Corp Ltd and is intended for informational purposes only.
The plan hinges on a small-scale mining agreement signed with joint venture partners Continental Lithium and C&C Minerals early in Week 48.
Under that deal, Continental (which holds a 33% interest in C&C) will manage on-the-ground mining operations and logistics. Chariot, which commands the other 66% in the JV, will oversee everything related to funding, offtake negotiations, and any regulatory compliance that may pop up short term.
The group will be working on the three-phase plan together, which will eventually see the existing artisanal lithium mining across the Fonlo, Gbugbu, Iganna, and Saki projects combined into a formal framework.
Phase one revolves around mapping, sampling, and target drilling.
The second stage will then be focused on metallurgical testing to determine processing pathways and guarantee the area’s possible recoveries.
The last phase will then see the Chariot-Continental JV evaluate toll processing options, including new third-party concentrate plants in Nigeria. Logistical analysis will also be completed to find “cost-effective” paths to sales.
“By pursuing a dual strategy of near-term small-scale production alongside long-term resource exploration, Chariot intends to unlock the full value of the Nigerian lithium portfolio,” the Aussie explorer wrote today.
The advantages, Chariot’s spokespeople added, are: “The early cash flows and on-site operational experience gained from the SSM can bolster and inform broader exploration and development efforts, without impeding the company’s core objective of a discovery of one or more major lithium resources.”
Key commercial terms include an optional working capital loan of up to US$500,000 from Chariot, as well as an operator fee for Continental that comes out at 10% of half-yearly net profits (payable when profitable).
CC9 shares opened Monday at 17c before popping +17.6%.
Join the discussion. See what HotCopper users are saying about Chariot Corp Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
