Chariot Resources (ASX:CC9) has come out of a trading halt on Monday morning to confirm it has received strong support for a capital raising to help fund its new Nigerian lithium project strategy.
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The company received firm commitments for a $2.15 million placement, which received backing from a group of institutional, sophisticated, and professional investors, including existing shareholders, long-term lithium investors and associates of GBA Capital. Non-executive director Brendan Borg also elected to subscribe for 500,000 shares and 250,000 CC9O options, Chariot confirmed.
Proceeds from the placement will be used to fund the company’s acquisition of a 66.667% interest in a Nigerian hard rock lithium portfolio from Continental Lithium. The additional capital will support exploration activities in Nigeria, as well as landholding and mineral claims maintenance costs.
“Chariot would like to thank all shareholders and new investors for your continued support,” executive chairman and MD, Shanthar Pathmanathan, said.
Earlier this month, Chariot reported that the Nigerian mining office had approved the transfer of four exploration licences (ELs) and two small-scale mining licenses (SSMLs) from Continental Lithium.
The six licenses include both exploration licenses at the Fonlo project and both exploration licenses at the Gbugbu project, covering an interest in the two projects as well as two small- scale mining licenses at the Saki project.
Mr Pathmanathan said the approvals were critical in satisfying a key condition precedent to Chariot acquiring the 66.667% interest in the Nigerian assets.
There are four further licenses awaiting transfer approval, including three exploration licenses at the Saki project and the sole exploration license at the Iganna project.
“These are monumental and indeed the global lithium sector as they signify the first entry of an ASX-listed lithium company into the high-potential lithium sector in Nigeria, which hosts lithium pegmatites already producing spodumene for the Chinese market but remain almost entirely undrilled,” Mr Pathmanathan said.
“Our ultimate goal is to make one or more large-scale discoveries in Nigeria. We will deploy modern, systematic exploration to generate high-quality technical data and drill-ready targets across an undrilled portfolio.
“We are also negotiating with potential offtake and asset-level funding partners for funding to accelerate drilling and for the re-start and development of small-scale mining activities.”
CC9 is steady at 11cps today.
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